Economist reports expected mortgage collapse in 2021

08:16, 06 January 2021
Economist reports expected mortgage collapse in 2021 Photo: Sergey Lantyukhov/

Russia may face a large-scale loan crisis in the spring of 2021. If the state does not intervene in the situation, many families will literally end up on the streets, economist Konstantin Selyanin believes. He advised buying a home on a mortgage this year only if absolutely necessary.

Already in February - April, we will see a full-scale loan crisis, when people who have received consumer and mortgage loans will be faced with the fact that they cannot pay them. And if we are talking about a mortgage, then banks will take the collateral. If the state does not intervene in this process, then everything will end with mortgage default and apartments' confiscation, Selyanin told URA.RU.

He specified that state programs for credit vacations ended in November 2020, and the dynamics of problematic debts - which have not been serviced for more than three months - have been growing for a long time, and the problem is about to rise to full growth.

This year, many should understand that buying real estate amid falling incomes is very risky. Therefore, I do not expect prices to rise. Moreover, with a specific government policy, there may be a decrease in housing prices, the expert added.

The vice-president of the Russian guild of real estate agents, Konstantin Aprelev, also does not expect an increase in housing prices.

Nevertheless, if you decided to buy a primary home, it is better to do it in the coming months. Since the preferential mortgage was extended until July 1, the excitement for housing purchase has decreased, and now developers can 'persuade' to buy apartments in many ways, Aprelev said.

The expert advises paying attention to secondary housing since the preferential mortgage for new economy class buildings gives only a small gain. He also recommended not investing in facilities with a low degree of readiness. reported earlier that thanks to the steps taken by the Russian government, the crisis in the country didn’t become systemic and didn’t have a destructive effect on the most critical sectors of the economy and companies, said Russian Minister of Economic Development Maxim Reshetnikov.