Home prices in Hungary are expected to rise 2% this year, FHB Mortgage Bank CEO Laszlo Harmati said on Monday, presenting the bank's latest Home Price Index.
Home prices fell 5.7% in 2010, the index shows. Adjusted for inflation, they fell a steeper 9.2%.
The index measured 169.7 points in Q4 and averaged 177.4 points for the full year. 100 points on the index is equivalent to the average price of homes in 2000.
Just 72,000 new and resale homes were sold in Hungary in 2010, down from 91,000 in 2009 and more than 270,000 in 2003, Harmati said.
An estimated 17,000 new homes were built last year, based on Q1-Q3 data, and the falling number of home building permits issued suggests the number will fall further in 2011.
The number of unsold homes in Budapest could peak at 5,000. (Econews)