Housing Market Kept Slowing Down in October

Residential

According to a monthly transaction number estimate by Duna House Group, a total of 8,326 residential properties changed hands in October, making it the weakest month so far year.

The 8,326 sales estimated by the real estate network nationwide show a 9% drop compared to the previous month and a 28% drop compared to October last year. In the last 10 years, only 2012 and 2013 have seen fewer transactions in October.

All existing home purchase subsidies will certainly be available until the end of the year, but even this is unlikely to make up for the slowdown in demand caused by the changing economic situation, Duna House says. With rising lending rates and the uncertainty caused by the energy crisis, the real estate network's experts expect a weaker final quarter.

According to domestic data from the group's European financial brand Credipass, the mortgage market also continued to decline in the month of October. The estimated HUF 68 billion of residential mortgage loans for the month of October represents a 37% year-on-year decline, while the monthly figure is 17% weaker than in September this year.

The fall in the credit market has been driven by the change in the interest rate environment, which has made many homebuyers hesitant to seek financial help and has left many with fewer loans to take out. The latter is confirmed by Credipass' third-quarter credit market indicators, which show a national decline in the size of loans taken out.

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