Although new apartment purchases have dipped slightly in recent months, judging by the mortgage figures, no dramatic change has occurred in recent months business has continued as usual. Banking sources cautiously predict that no slowdown will take place in the coming months, either. "What we'll see is strong demand for mortgages in the months after the program takes effect," a banking source said.
The sources added that while those eligible for an exemption are treading water at this time, other sections of the public are stepping up their activity. "Those unaffected by the VAT exemption regard this period as an opportunity to obtain better terms from contractors fearful of stagnation before the program goes into effect. Furthermore, we see no decline in activity by investors, who are influenced by the low interest rate and expectations that it will continue on its downward path," noted a senior source in the mortgages sector.
The banks believe that time is required before other measures planned in the housing market, such as a target price, will have any effect. In the bottom line, the public does not yet believe that prices will drop substantially: "Someone who needs to buy an apartment will do it, not wait," the sources said.
The mortgages market has been booming for a long time. The record for mortgages taken was broken last year.
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