The Hungarian housing market has not been this weak in 10 years
In ten years, that is, since 2013, December has not been as weak in terms of the number of sales as it was at the end of 2022 in Hungary. Only 6,474 apartments have been sold. Will the Hungarian housing market stay this weak in 2023, too?
Hungarian housing market is very weak, there is low demand
Looking only at the months of December, in only two years, in 2012 and 2013, was the demand lower than in 2022. Then, 6,061 and 5,768 apartments were sold. In the past 12 years, the weakest month was January 2011 with only 5,183 apartments sold. Meanwhile, March 2021 holds the positive record with 15,630 apartments sold, Portfolio writes.
Why the setback?
In addition to expensive loans and the deteriorating economic environment, uncertainty surrounding the various elements of family support may have played a role in the negative performance in December. However, most of them have been extended, so they will remain available in 2023. For example, the baby loan is what can strengthen the demand in the housing market. Although many people have already used this subsidy for the purpose of buying a home, in the future its proportion may be even higher. In addition, the village CSOK can strengthen the rural housing market.
What to expect regarding the Hungarian housing market this year
After this weak period, how will the future of the Hungarian housing market look? According to ingtalan.com’s measurements, in the last month of 2022, the number of inquiries fell even more than the number of sales, by 53 percent compared to the same month of the previous year. Salespeople have confirmed this too, who predicted longer sales times and higher price negotiations.
Last year, the increase in the proportion of purchases for investment purposes was noticeable, which was mainly due to the decreasing number of purchases for own purposes. With the current inflation levels, no interest rate reduction is expected for the time being, so this trend will continue in 2023 as well.
The maintenance cost of apartments may be a key factor
Last year, two different directions were visible. On the one hand, as a result of the energy price explosion, the demand for well-insulated, low-consumption apartments has increased. On the other hand, the sale of low-quality, low-energy, large-sized houses has become much more difficult. Although it seems that the increase in energy prices has stopped, the maintenance cost of the apartment may play a much larger role in the future. In 2023, the number of transactions might be around 105 thousand.
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Source: Portfolio