Real estate frenzy: homes are selling fast, with buyers bidding up prices in just a few days

The housing market in recent months

The housing market has undergone significant changes in recent months. Prices are rising sharply and properties are finding new owners almost immediately. The surge in interest has often forced sellers to block their phone numbers to stop receiving calls from buyers.

Market causes and consequences

Rise trends

After a quiet housing market in late 2022 and 2023, 2024 saw significant price increases of 7.8% nationally and 11.8% in Budapest. The rise in prices was also supported by an increase in demand, which gradually caught up with the renewed supply.

Reasons for subdued sales in 2023

Housing market activity in 2023 was low, driven by high inflation and rising mortgage rates. High government bond yields also reduced interest in housing.

Sovereign Bond Market Impact

In 2024, inflation fell, and although government bonds were still available, people became interested in the housing market again. By the end of the year, the market started to price in the increase in demand expected in early 2025.

Real estate craze in 2025

• The interest rate on government bonds, especially the Premium Hungarian Government Bond, fell significantly, which pushed investors back to the housing market.
• In 2025, a normalisation of the ratio of owner-occupiers to investment buyers was observed in the market.

Urban and suburban changes

In inner city housing markets remained buoyant, with demand for smaller homes in particular increasing as they are easy to resell or rent out as sublets. The conurbation has become more attractive to home seekers, as rising prices in the city centre encourage people to move to suburban areas.

Regional differences

In addition to Budapest, Debrecen and Szeged also stand out for their high house prices, which have been shaped by local economic investment. There are significant differences in house prices across regions, which can be explained by economic development.

In summary, the Hungarian property market is constantly changing, with both ownership culture and economic factors influencing price developments.

Source: telex.hu