Real Estate Market: Weak Start to the New Year

Based on estimates by Duna House, the real estate market plunged to a new low in January 2023, after stagnating in November and December. The 5,853 sales estimated by the real estate network nationwide represent the weakest start to the year in 10 years: the last time there were fewer transactions in January was in 2013.

The January figure translates a drop of 10% compared to December and 46% compared to January 2022. In a slowing, depressed market, it is mainly sellers who need to adapt better by rethinking and lowering their selling prices, while buyers can get into a better bargaining position.

Duna House experts do not expect the market to strengthen this year either: our annual forecast indicates a sales volume range of 90,000-110,000 for 2023, which is confirmed by the first Januaryestimate. It is worth recalling that in the period after the 2008 crisis, the number of housing transactions hovered around 90,000 per year between 2009 and 2013.

According to data compiled domestically by Credipass, the group’s international financial brand, the volume of loans on the credit market also fell significantly in January 2023, in tandem with the housing market. Credipass estimates that in the first month of the year HUF 37 billion of residential mortgage loans were taken out, down 10% on the previous month and 66% on January last year.

However, it is important to note that at the beginning of last year, Green Loans were still having a significant impact on the overall market.