The survey data shows that in past month, the number of Latvian residents who forecast a rise in property prices over the coming 12 months has increased slightly compared to the previous survey in August. Around 32 per cent of respondents (29 per cent last month) now say home prices will be higher in a year than they are currently.
The number of people forecasting a decline has reached the lowest level so far - only 18 per cent of respondents believe that prices will fall.
“Despite the news about more expensive energy resources and food products, this has not influenced the mood of Latvian residents in respect to home prices. Of course, while the new bills for heating have not been received, and there is no clarity about the amount of real property tax that will have to be paid next year, residents do not treat the increase of these expenses as material threat for the real property market prices, says SEB’s Latvian household economist Edmunds Rudzītis.