Number of Sales and Mortgage Loans Amounts Down

The number of sales and the amount of mortgage loans for housing fell significantly in July, with the number of transactions down to 8,978 and the amount of contracts amounting to HUF 110 billion, the real estate brokerage Duna House said in an estimate posted on the Budapest Stock Exchange (BSE) website on Monday.

The 8,978 residential property exchanges estimated by the company for July represent a 17% decrease compared to the previous month and a 20% decrease compared to the same period last year. A similarly low level of activity was seen in the epidemic-hit May 2020.

The announcement of changes to utility capped prices and the still rising interest rate environment have slowed the market, but government decisions announced last week – a 5% housing tax, the continuation of the housing benefit cheque scheme and the Baby Loan – could boost market activity in the longer term, the company wrote.

The July mortgage estimate of HUF 110 billion by Duna House is a 17% drop from last July's HUF 132.6 billion and an 8% drop from this June's estimate.

The real estate firm expects the mortgage market to continue to see declining volumes due to the expiration of green loans and the rising interest rate environment.

The estimate released by Duna House shows an approximate mid-year figure, based on the monthly number of transactions of properties the company has posted and DH's estimated market share.

The company's shares are traded in the premium category of the BSE, closing at HUF 484 on Friday, having traded between HUF 400 and 608 over the past year.