Czech mortgage market drops 17% in 2019

by   CIJ iDesk I
2020-01-10   12:13

The volume of mortgages awarded in 2019 fell 17 percent to CZK 181bn, the lowest figure in five years, according to the market leader Hypoteční banka. E15 writes that bankers are clear about who's to blame for the fall. "The business was impacted by the Czech National Bank (CNB)," said Petr Hutla (ČSOB). "The numbers in terms of absolute values can't be considered bad." In 2018, the CNB made it tougher for consumers to qualify for mortgages, warning that residential prices were too high. E15 writes that high real state prices themselves have contributed to the drop in demand for mortgages. But signs of life remain. "Jiří Feix of Hypoteční banka, said the end of the year was strong. "In December there were more mortgages sold than in 2018. This year we expect mild, single-digit year-on-year growth."