OREANDA-NEWS. May 17, 2011. The first few months of 2011 were quiet on the home loan market, and its long-awaited recovery would appear to have been postponed. The volume of new home loans issued in Estonia at the start of the year was the same as in 2003 – an average monthly value of just 30 million euros, reported the press-centre of SEB.

“We’re seeing all the time that banks are prepared to start lending again, and there’s clearly a need out there for people to upgrade in terms of where they’re living,” said Eerika Vaikmae-Koit, head of retail banking and a member of the management board of SEB, speaking at an information day organised for real estate agents. “As such there is a need for home loans on the market, and banks are willing to offer them, but people simply aren’t prepared to be making such weighty decisions again so soon. They still lack the sense of security they need, but a growing problem is the fact that potential home-buyers aren’t finding the kind of places that suit them. The properties that were developed during the boom have lost their appeal, but the apartments and houses that are being built at the moment aren’t ready yet.”

Interest in new developments has grown, and people are shaking hands on reasonable deals with trusted builders before construction has even begun. “That said, the similarities with the heyday on the real estate market are only superficial,” Vaikmae-Koit explained. “Buyers are much more critical in terms of price when it comes to new developments – they’d rather pull out completely than compromise on it. But developments are coming onto the market, which will increase the available choice and competition, so we should reach a point with prices where buyers are more willing to make a deal. How well informed you are is particularly important when you’re making this kind of decision, and at SEB we’re prepared for the recovery on the home loan market. We’ll do everything we can to make sure our clients are in the best possible position to make purchase decisions.”

In order to contribute to the recovery of the market, SEB is reintroducing its New Home Day series of events, at which real estate agencies showcase their best offers at bank branches, enabling anyone interested to obtain an overview of current offers. The first event will take place from 11.00 am to 3.00 pm on 14 May 2011 on the 4th floor of the main office of SEB at Tornimae 2 in Tallinn.