During a macroeconomic review conducted by SEB Bank on Tuesday, an economist provided insights into the current state of the housing sector. He stated that the market is presently active, and he thinks this robust period of activity is likely to continue over the coming months. However, the speaker cautioned that the rate of growth may moderate, given the exceptionally strong performance observed during the latter half of the previous year.
He suggested that some months might experience a slight dip in the volume of housing transactions. The central message derived from the analysis points toward a gradual decline in overall housing demand. According to T.
Povilauskas, the economist anticipates that the number of transactions could decrease by a rate exceeding 3 percent in the coming year. This projected slowdown is not attributed to systemic failure but rather to several temporary, one-time factors that artificially inflated demand earlier this year. Specifically, the economist cited the commencement of the second stage of the pension reform as one contributing element.
Furthermore, the proposed regulation concerning the Responsible Lending policy by the Bank of Lithuania was identified as another key factor influencing the expected dip in activity. These external policy shifts are expected to temper the purchasing power and transaction volume in the near term. Overall, while the market remains engaged, analysts advise stakeholders to prepare for a normalization period following the heightened activity seen in the preceding months.
Topics: #market #active #think
