BIK indices signal recovery in demand for housing loans
Last month, the process of unfreezing the economy, which started in May, was continued. According to BIK data, in July 2020 a total of 38,750 people applied for a housing loan. customers, compared to 41,390 a year earlier (a decrease by 6.4 percent). Average amount of the requested housing loan in July this year. was PLN 286,200 and was 3 percent higher than in July 2019. Compared to February 2020 (the last pre-pandemic month), the average loan amount decreased by 2 percent..
“The July data of BIK regarding the demand for housing loans clearly show the lower number of applications submitted in the next month compared to the corresponding period last year, which is directly attributable to the coronavirus pandemic. However, the dynamics of the index recovery from minus 24.6 percent in May 2020, through minus 6.7 percent in June to the current minus 3.5 percent in July, is encouraging. While achieving a level comparable to the previous year seems to be within reach, it is very far from the pre-pandemic level, i.e. the record plus 27.7 percent in February 2020,” Kinga Burcan, credit expert, Managing Partner at Trinity Finance, pointed out.
It is worth noting that the amount of loans applied for is increasing, in July 2020 it was 3 percent higher than in the corresponding period of the previous year.
(WBJ)
