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Home market recovers from April nadir

In May 2020, some 8,400 homes were sold in Hungary, while the value of mortgage contracts came to approximately HUF 63-73 billion, according to a monthly estimate by real estate broker Duna House.

Duna House argues that the Hungarian real estate market activity has somewhat recovered since reaching its lowest point in April. The easing of coronavirus-related restrictions on life means that customers are gradually returning to the market.

While the number of home transactions was 35% than in April, May 2020 sales were still 38% lower than during the same period of the previous year. On the other hand, the gap seems to be closing up somewhat, as sales during the last couple of weeks in May were only 22-31% lower than a year prior.

The effects of the COVID-19 epidemic can also be observed in the mortgage market. The value of mortgage loans realized in May 2019 stood at HUF 86.1 bln, which is well above Duna Houseʼs estimates for May 2020. The estimated amount of HUF 63-73 bln represents a decrease of 15-27% year-on-year.