Can real estate prices fall this year?
In fact, many people think a lot about how the real estate market is going to turn out this year, and how lending is going. They argue against why real estate is expected to be more expensive or even cheaper. We try to think with everyone’s head and see what we can expect this year. Come with us!
How we closed 2018
Last year, housing prices and borrowings rose in absolute terms. This is not surprising, as the central bank base rate is still very low (0.9%) and thus the interest rates on loans are low.
Price increase was felt mainly in the capital , as based on the data of the first three quarters of last year, real estate in Budapest was sold at an average price of HUF 492 thousand, which is an increase of more than 20% compared to HUF 410 thousand. At the same time, there is news of 18% growth in county seats . Is there any further growth this year?
2019 will be an interesting year
However, last year there were a couple of important events that we believe will affect this year’s property sales and purchases.
Firstly, at the height of the end of October last year, the conditions for financing private persons were tightened . That is, a person who takes out a non-fixed (ie long-term) loan in the long term may borrow less than a percentage of his income.
That is why many people brought forward their loan. According to many (and we are inclined to do so), they will miss this year’s purchases, so if everything is calculated, demand will be lower, meaning prices may fall slightly.
Household savings have been stripped of up to $ 72,000 in state subsidies for 30% a year , and until the population gets used to new home savings or, say, securities accounts, they are waiting to see where it is worth collecting for a home.
Can also lead to a slight drop in the number of purchases and property prices
Overall, the situation has not changed much for the sellers of the apartment or for those who want to buy it. That is, it is equally worth buying and selling real estate. If you have such thoughts, please contact us! We help you make the most of your real estate project financially.