Houses are advertised en masse in small Hungarian villages – who will buy them?

Interest in homes for sale fell by more than 40 percent compared to October last year. In Pest county, the drop in interest is more than 50 percent, and in Csongrád-Csanád and Győr-Moson-Sopron counties, interest in properties is also down by 41-43 percent.

The two sides of the national housing market continue to move in opposite directions, with demand moderating in October alongside a modest increase in supply, according to the October supply-demand summary of ingatlan.com, as can be read in napi.hu’s article.

October’s fresh supply was 1 percent higher than a year earlier, with nearly 33,000 homes for sale advertised. The most significant increase was recorded in municipalities, with the smallest municipalities seeing a 9 percent increase in the number of flats and houses advertised compared to October last year. In the county seats, the increase was 4 percent.

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The total supply of properties for sale also increased, with more than 165,000 properties for sale at the end of October, compared to 155,000 a year earlier. At national level, demand was significantly lower than a year earlier.

Interest in homes for sale fell by more than 40 percent compared to October last year. In Pest County the decline was more than 50 percent, in Heves, Győr-Moson-Sopron, Csongrád-Csanád, Zala and Budapest 41-43 percent. Meanwhile, in Jász-Nagykun-Szolnok, Nógrád, Borsod-Abaúj-Zemplén, Tolna, Békés, Komárom-Esztergom and Veszprém counties, interest fell more modestly, by 22-29 percent.

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“The development of supply and demand in October does not come as a surprise, as the acceleration of inflation, the significant slowdown in real wage growth, changes in utility bills and the related increase in living expenses continue to make home buyers cautious,” said László Balogh, chief economic expert at ingatlan.com, commenting on the latest data. “In this situation, sellers will have to adapt to the demand side, i.e. a slowdown in housing market appreciation is expected.”

A decision on the possible extension of state subsidies that expire at the end of the year could also be taken in November, which could be crucial for the future of the housing market.

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Source: napi.hu, ingatlan.com