In 2022, second-hand house prices started to fall in the last quarter of the year in Hungary. Fortunately, this trend is expected to continue this year. Buyers are still in a good bargaining position as prices continue to decrease moderately due to high interest rates and energy consciousness.
A modest fall in house prices
According to the latest data from the Hungarian Central Statistical Office (Központi Statisztikai Hivatal, KSH), the price of second-hand housing fell by 2.6 percent in the last three months of last year, ingatlan.com reported. The portal quoted László Balogh, chief economic expert of ingatlan.com, as saying that the latest data are in line with expectations. In the supply market, it could already be seen last autumn that second-hand house prices could fall modestly in the last quarter of last year.
Long-term data shows a huge increase since 2015
However, it is also true that, despite the quarterly price decline measured by the KSH, the year-on-year increase was still almost 17 percent at the end of 2022, 168.hu reports. It is also important to note that, based on long-term data, the price of second-hand housing has increased two and a half times compared to 2015. Last year, according to preliminary data, more than 120,000 homes were sold. These included 112,000 second-hand homes. Last year’s turnover in the housing market was in line with expectations; however, it was below the figure of 161,000 in 2021 and the figure of 149,000 in 2020, Mr Balogh added.
Significant drop in house prices in some places
According to data from ingatlan.com, prices have fallen by more than 3 percent in a number of municipalities compared to the beginning of this year. In Budapest’s agglomeration, for example, in Diósd, Tököl or Nagykovácsi, the average price per square metre of family houses for sale has fallen by 6.5-9.6 percent, azenpenzem.hu writes. In Fonyód, on the southern shore of Lake Balaton, prices fell by 6 percent, and in Rajka, on the western border, by 6 percent.
The fall in prices to continue this year
According to László Balogh, the market for second-hand housing may remain subdued for the time being. At the same time, buyers are still in a good bargaining position due to falling demand. The fall in house prices is likely to continue this year due to buyers’ increasing energy consciousness and high interest rates on home loans.
Source : Daily News Hungary