Housing prices continue to rise, but the risks are also rising according to Rock Home

Marcell Kövesdi, owner and CEO of Rock Home, said the market was stable, there are no signs of decline for the time being, but due to strong demand in the first three quarters of the year - around 12 percent nationwide - in the capital and cities the risk of overpricing.

This year's and future growth is partly due to a 12.8 percent increase in earnings this year, and is expected to continue to grow next year, and the government is expanding the range of people who can get a family home discount (chok). It was recalled that the expansion of chocolates is most advantageous for families with two or three children living in the countryside, as the government decided to extend the 10 million forints interest rate subsidy to families with two children and raise the amount to HUF 15 million for three children.

He added that the market has undergone significant development since the 2008 crisis, and the data seem to be undermining next year and in 2019.

According to market data, the average price of a 50 square meter condominium flat in 2008 was 8.1 million forints, while this year it is 45 percent more than 12 million forints. The average price of a new apartment of 50 square meters in ten years increased by 37 percent to HUF 20.5 million. This year, about 165,000 homes will be sold on the Hungarian real estate market , nearly 5 percent more than last year, and the average price will rise from HUF 13.6 million to HUF 14.2 million.

Marcell Kövesdi said, however, that these data are often informative only, as there are great differences between cities and villages and regions within the country: in the capital and in the cities where the automotive industry is present, it is much higher . Property prices will rise by -20 percent compared to rural areas. According to the data, while price increases accelerated in the capital and the larger settlements, there was a slowdown in the villages: price dynamics increased from about 16% to 20% in Budapest and from 13.3% to 16.3% in cities, while in villages it increased by 16.9%. It dropped to 11.8 percent year on year. The price per square meter in the villages fell to 20 percent of the Budapest average compared to last year's 25 percent.

The real estate expert advises those who want to invest to take into account the fact that even with higher prices for homes, income has also increased - net salaries calculated without discounts from 122 thousand for the month of 2008 to 210 thousand forints, or 72 per cent - for housing today. work as before. According to market data, the purchase of flats requires more and more years of average earnings: the average price of an average of 65 square meters of second-hand dwellings should be paid nationally in 2018, in Budapest 8.9 years , while in 2017 only 5.2 and 8, respectively. It took 2 years. The same applies to a new home for 9.4 (9 in 2017), and 10.7 (10) years in Budapest.

Marcell Kövesdi Real Estate Expert continues to emphasize that he believes it is worth buying an investment of up to 40 square meters and at least one and a half to two. The location of the property is also very important, depending on what kind of customer base we would like to resell or use it for.

As far as trends are concerned, the owner-manager has said that customers are increasingly looking for cheaper, more residential properties. He added that demand in Budapest seems to be unlimited, there is essentially no unsold housing in the capital, but this increases the risk of overpricing.

Another trend is that while previously the price was lowered for uninhabited dwellings, they are now raising the target price and gaining more and more space, with about 5% of transactions being sold at a higher price than the one announced. The market has also changed in terms of being able to get an average of 5-6 percent off the price before, now only about 2 percent.

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(Source: marmalade.co.uk <br> pixabay.com)