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Current risks in the CESEE residential property market: evidence from the OeNB Euro Survey

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After a pronounced boom-bust cycle during the global financial crisis, house prices in Central, Eastern and Southeastern Europe (CESEE) are now recovering but still remain below precrisis levels. Evidence from the OeNB Euro Survey of households shows that every third household considers finding a new residence difficult, with the perceived difficulty being particularly high in areas of low bank penetration and among low income households and households whose highest level of education is primary education. Foreign currency mortgage holders are found to be more frequently in arrears in Hungary and Serbia than in other CESEE countries; the exchange rate and interest rate differential risks of foreign currency mortgages have increased in several countries, however. Loan arrears are high in general, and households in arrears are at their financial limits. At the same time, demand for housing loans is found to be increasing again.

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  • Elisabeth Beckmann & Antje Hildebrandt & Krisztina Jäger-Gyovai, 2015. "Current risks in the CESEE residential property market: evidence from the OeNB Euro Survey," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 26-38.
    • Handle: RePEc:onb:oenbfi:y:2015:i:3:b:2
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    1. Elisabeth Beckmann & Anita Roitner & Helmut Stix, 2015. "A Local or a Foreign Currency Loan? Evidence on the Role of Loan Characteristics, Preferences of Households and the Effect of Foreign Banks," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 24-48.
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    Cited by:

    1. Doris Hanzl-Weiss & Michael Landesmann & Carolina Lennon, 2016. "Monthly Report No. 5/2016," wiiw Monthly Reports 2016-05, The Vienna Institute for International Economic Studies, wiiw.
    2. Marc Bittner, 2021. "Which borrower in CESEE gets which loan? Evidence from the OeNB Euro Survey," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q4/21, pages 77-92.

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    More about this item

    Keywords

    residential property markets; housing finance; household survey; Central; Eastern and Southeastern Europe;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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