Alexander Danilov, Head of Bank of Russia’s Banking Regulation and Analytics Department, said that despite preferential mortgages, the affordability of housing in Russia has not increased. The statement was made at the All-Russia conference “Mortgage lending in Russia”, reports TASS.
“How many average annual salary, if you do not drink, if you do not eat, if you save everything, how many years do you have to save to buy an apartment? At the end of 2019, it was six years in primary education, now eight years. So what kind of accessibility are we talking about?” Danilov addressed the audience.
The head of the department noted that in the context of the sharp rise in housing prices in the primary market, regulators have presented plans to reduce loan rates, but pointed to the short-term nature of such a decision.
“And then what? Are we going to invent negative rates? Are there any other plans? The potential for such artificial maintenance (mortgage demand) is exhausted. That’s why we’re in favor of a longer-term, stable date,” said the Central Bank representative. We’re talking about using increased reserves to help buy it at a below-market price.
former real estate agents reportedMuscovites began to save more by waiving their mortgage insurance.