The impact of NBP interest rates on house and apartment prices

Who really dictates housing prices? Not developers or brokers, but the Monetary Policy Council (NBP). Interest rates are the main thermostat of this market. When rates are low, loans become cheap and easily accessible. Demand explodes on the market – almost everyone is buying, and real estate prices skyrocket in the blink of an eye. Paradoxically, what you gain on cheap financing is very often 'eaten up' by the inflated price of the property itself. Conversely, when the NBP raises rates, the money tap is turned off. Creditworthiness melts away, and the installment shoots into space. Demand suddenly dies down, and mostly cash buyers remain on the battlefield. Prices slow down, and direct listings hang on portals much longer. What do developers do then? They halt new construction because of rising costs for them as well. The result? When rates finally drop again, there will be a shortage of ready apartments on the market, acting as rocket fuel for further price hikes. It's a system of communicating vessels. Before you take out a mortgage for decades, check which way the wind from the NBP is blowing.