The head of the Bank of Russia recommended taking this point into account when planning a home purchase
The head of the Central Bank, Elvira Nabiullina, during a press conference following the results of the next meeting of the monetary policy regulator, noted that the Central Bank expects a slowdown in housing prices. According to her, these rates may be even lower than the growth rate of household income.
“As for choosing the moment to buy an apartment, everyone has their own life situation and their own needs, but we proceed from the fact that the growth rate of housing prices will slow down and, perhaps, will be less than the growth rate of household incomes. This should be taken into account when deciding on the purchase of apartments,” Nabiullina explained.
The head of the Central Bank also noted that the completion of the state mortgage program for new buildings at 8% will cool the housing market, and housing affordability will grow. At the same time, housing prices will not adjust to demand instantly, Nabiullina stressed — the so-called “ratchet effect” is possible on the market.
According to Nabiullina, by the end of 2024, the Russian mortgage market is expected to grow by 7-12%. At the next meeting on July 26, the Central Bank raised the key rate for the first time in seven months — by 2 percentage points at once, to 18%. Experts expect a proportional increase in mortgage market rates.
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