September is usually a busy month for residential developers in Prague, but this year was an exception. Not only did sales fall in September compared with August, but the volume of mortgage loans slipped as well. Hospodařské noviny reports that tougher mortgage conditions and a lack of supply are combining to throttle the sector. “We’re seeing a certain shift in the market,” said Hypoteční bank’s head of real estate Petr Němeček. “The number of mortgages is falling and the rise in real estate prices is slowing. In some regions, prices are beginning to stagnate. In Prague, there’s still some room for growth. But it won’t be as rapid as it was over the last 18 months.” The economic daily says its reporting found that the reason isn’t falling demand, and that there are more people looking to buy than there are available homes for sale. The problem is simply that they’re too expensive.
