Despite rising prices by 20-30 percent in one year, the real estate market in Lake Venice is still in strong demand, but several factors have emerged on the horizon recently, according to a recent analysis by Balla Ingatlan.
Uncertainty is already prevalent in the real estate market, factors that have caused a noticeable stagnation in demand in recent months, such as the war in Ukraine or the elections – dr. Csaba Kovács, professional manager of the agárd office of Balla Ingatlan.
At the same time, we can still basically talk about a demand market, which means that searches are more typical around Lake Venice than sales. But the two events caused noticeable waiting not only on the demand side but also on the supply side, the real estate agent stressed.
As he said, supply is weak, and there is a kind of “excessive anticipation” on the part of owners, which means they are greatly overvaluing their properties when it comes to pricing. Unrealistic expectations are especially common when they try to start selling without a real estate agent in the first place, he noted.
However, due to too high advertising prices “not for sale” or at least “not for sale for a long time” the advertised properties fall into category until their price level meets the price level accepted by demand.
Highly positioned prices can, of course, catch up, as, as the expert pointed out, there has been a significant rise in prices over the past year as well: it is estimated that the prices of average holiday homes and residential properties in the area have risen by about 20-30% over the same period last year.
On the other hand, we can’t talk about big bargains, at least in the case of well-priced real estate, as there are typically a lot of people interested in these, so they may even sell at the advertising price, and even the buyers may bid above the advertising price. At the same time, the average bargain value ranges from about 5 to 10 percent, mainly due to overpriced properties, for which owners are forced to give a significant discount if they really want to sell their property.
Of course, the pricing is reflected in the time of sale, so a well-priced – and properly advertised – property will sell out relatively quickly: according to Csaba Kovács, in about 30-45 days. If, on the other hand, the real estate agent is forced to break the price due to overpricing – in order for the advertising price of the property to reach the market level – sales times longer than three months will appear.
Anyway, properties that can be sold faster than average are now medium-sized garden cottages. These are typically 60-80 square foot, three-room houses with normal-sized plots. Their average price is currently around HUF 45 million, if it is a property that was built earlier but is well maintained.
In the newly built real estate market, both supply and demand in the area are modest. According to Csaba Kovács, the developers set very high prices at the start of the investments, however, the interest in them did not develop very prominently, as the investors in this segment were most cautious.
The expert also pointed out that, according to his subjective experience, when using loans, an interesting phenomenon can be observed that either buyers do not use a loan at all to buy real estate, or they cut into the purchase with a maximum loan of tens of millions of forints.
What was previously a common solution, that is, buyers supplementing their available capital with a few million loans, has almost completely disappeared from the real estate market. At the same time, the effect of rising interest rates in recent months has not yet been felt in purchases, but the majority of buyers are still trying to position their existing savings in real estate, the expert noted.
Finally, in terms of expectations, the expert indicated that the current situation is difficult to predict because there are several factors affecting the real estate market that do not really see its future run-off and impact. The war, which is not over yet, has also come to a standstill, but there is also uncertainty about high inflation and official prices, so perhaps the market is now mostly waiting.
Source: Ingatlanhírek by ingatlanhirek.hu.
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