House price index increased by 2.3% during the second quarter of this year, compared to the same period of a year ago, according to Bank of Albania’s Monetary Policy For The First Semiannual of 2015 report. Despite this increase, the house price index still remains at lower levels than five years ago as well as house prices.
The report cites that “the house price index increased by 2.3% during the second quarter of 2015 in comparison to the same period of a year before, while housing rent index decreased by 0.4% in real terms. Despite short term fluctuations, the house and rent price indexes still are lower than the average of five latest years.”
Since 2010, house prices have decreased continually by 20% due to the negative effects of the European economic recession in 2008. However, the latest report on house and rent price index shows the price to rent ratio increased by 0.3 points during the first quarter of 2015. This was reflected by an increase of house prices in the second quarter of this year.
According to Bank of Albania’s report, “the quarterly dynamic of house price index for the second quarter has reflected the increase of consumer confidence and the ease of standards for mortgage loans. Based in the lending activity monitoring, private banks reported that household demand for loans to purchase houses increased during the second trimester of this year. Also, the increase of construction permits during the past year shows investments in housing increased.
News source: Shqiptarja.com
Photo credits: Quinn Dombrowski (Flickr)
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