The professional public still disagrees on whether we are in a real estate bubble. The most common arguments against it include low unemployment<\/strong>, still relatively affordable mortgages and supply still lagging behind demand.<\/strong> Despite this, some investors are reluctant to buy on mortgage. Why? Behind the fears are mainly high prices and the expectation of a decline, and thus the purchase on a mortgage is mainly approached by those who have no choice and urgently need a new home.<\/p>\n\n\n\n

The situation in 2022 is very similar to that of 2008, but there is one fundamental difference.<\/strong> In 2008, there was a decline in prices and a bursting of the real estate bubble due to a decline in interest in real estate. Clients were simply not buying as they had been for years before. The reduced demand directly affected supply and sellers had to go down in price.<\/p>\n\n\n\n

However, at the moment the Slovaks are interested in real estate still high interest,<\/strong> which is related to the low supply of housing as well as the possibility of protecting savings from the impact of inflation. This allows sellers to continue to increase prices, although not at such a fast pace and only for new properties.<\/p>\n\n\n\n