Statistics: Growth in the aggregate total of wages outpacing loan balances

Balances on loan private individuals’ loans in Estonia have begun to grow at accelerating rates. According to the Bank of Estonia, last August the balance on private individuals’ loans stood at 7.23 billion euros, up 3.5% year on year. Growth in loan balances is being driven by the growing turnover of loans. In the past six months, growth in the annual turnover of loans has been in the quite high range of 13 to 21 per cent.

The situation of rapid growth in loan balances is increasing indebtedness. This, in turn, is creating risk that banks will apply brakes on the issuing of home loans. That, similarly, will slow the rate of transactions completed on the real estate market and cause prices, which have remained stable, to fall. (more…)

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Statistics: For an average apartment in Harju County, 7.4 years’ mean wages have to be paid

In an Estonian average, 5.7 years’ mean net wages have to be paid on a transaction with an apartment. In Harju County, wages are higher; however, real estate there is also the most expensive. As a result, far more – 7.4 years’ wages – has to be paid on an average transaction with an apartment in the capital and its vicinity.

On an average transaction with an apartment, sellers of real estate charge 5.8 years’ wages in Tartu County and 4.1 years’ wages in Pärnu County. (more…)

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