Residential property transactions in Hungary drop m/m. grow yr/yr in August

Following the high intensity of July, the summer holidays in August saw the domestic real estate market, like all sectors of the economy, return to its usual summer lull.

Duna House's estimate of 9,323 transactions for the month is the same as the estimate for June. The August results thus show a 19.2% weaker performance compared to the previous month, but still a 13.5% stronger performance compared to the same period last year.

In theory, this means that on average a home was sold every five minutes in the country last month.

This is how the first eight months of 2024 look like compared to January-August of the previous three years. 

According to the Group's data, the mortgage market also saw some slackening in August this year, with an estimated HUF 105 billion in mortgage loans for housing. Compared to the July estimate, the volume decreased by 9%, while the segment performed 93% better than the central bank's (MNB) figure for the same period last year.

The graph below shows that the humble 13.5% yr/yr growth in August came on the back of a nearly 89% jump in July, and the 19.2% m/m contraction comes after a 23.8% m/m growth. (The second graph below just give you a closer look on the past three years.)

Cover photo (for illustration purposes only): Getty Images