Tõnu Toompark posted on his blog that the KV.ee Tallinn residential property market index has fallen to 61.7 points, back at the level of December 2005. The offer price index has fallen 11.5% YoY. He admits that the drop is bigger than expected.
Regionally Tallinn has been the most “stable” with the 8,5% drop whereas offer prices decreased 12% in Tartu and Pärnu and plunged 28% in Narva.
Pressure on the index currently comes from areas outside Tallinn, Pärnu and Tartu – smaller and less active communities mainly.
In addition to the decrease in offering rates the number of offers keeps growing.
It is apparent the slightly growing optimism on the residential market is attracting new vendors who now expect to unload their properties.
According to Statistics Estonia the consumer price index of October is 1,5% higher than that one year ago. At the same time housing expenses have increased as much as 8% in one year. By today, in comparison with the year 1997, the consumer expenses have almost doubled and the housing expenses have increased 3,2 times….