According to Fincentrum Hypoindex, banks have already lent CZK 259 billion to people for housing in the first seven months, which is CZK 5 billion more than for the whole of last year. However, the interest rate continues to rise gradually and is expected to attack by 3% by the end of the year. For those who have saved money and want their own housing, it will be increasingly advantageous to finance the purchase with their own money, which at the same time best protects against inflation. And people are aware of that. This is shown by Central Group’s internal statistics, according to which the age structure of loan applicants and the amount of the average mortgage have changed significantly.
People borrow less, while housing prices are rising. The level of savings among people has increased and they are using their own resources more to finance new housing.
This is also confirmed by changes in the structure of loan applicants. Compared to last year, the share of people between the ages of 40 and 50 increased the most (from 22 percent to 33 percent). People from 30 to 40 years of age, who make up the largest group of loan applicants (38 percent), also borrow more. On the contrary, the share of young people under 30 who have fewer savings of their own has fallen compared to last year and does not make up even a fifth. It is still the case that men predominate among the applicants. This year, the gender ratio is 52 percent to 48.
Czechs have long perceived the purchase of real estate as the best protection against inflation. According to the latest CNB forecast, it may jump up to 4 percent by the end of the year. No savings account will offer such interest today.
Source: Central Group
Photo: Radlické vyhlídky – Centrál Group
