The news of the real estate market in recent months has been nothing more than changes in rents and supply, as summer is traditionally the high season of this market. Because life cycles change with the seasons, the seasonality of the real estate market has been a process that has been observed for decades, for example, during the summer holidays or around Christmas, we do not normally deal with the purchase of real estate.
“Buying and selling real estate is a complex process, many people may not even think that it can even depend on the habits associated with the seasons and the climate to be able to make the best possible offer. Although these are observations rather than facts that can be based on scientific completeness, at any time of the year you can see exactly what type of property a “season” has. However, this year the coronavirus epidemic and the start of subsidies for housing construction have also affected this cyclicality, ”he says. Dávid Valkó, senior analyst at OTP Ingatlanpont.
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- Spring: With the arrival of a good time, life restarts and the demand for real estate also increases significantly. Although traditionally the holiday real estate season begins in the spring and interest is highest in May, this year has changed earlier than usual and the domestic holiday market began to boil over earlier in the year.
- Summer: After the hustle and bustle of spring, real estate market activity typically declines during the summer months and this quieter period gives a new impetus to the student housing search season, which begins with the announcement of higher education points. This year, more than 100,000 students have resubmitted their application, so by the end of the summer, after allocating places in dormitories, tens of thousands of young people are expected to apply for housing.
8638 Balatonlelle, Honvéd utca 52.
41.97 – 182.31 m2 surface
58.97 – 373.83 M Ft
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- Autumn: The start of education in the fall will not only have an impact on higher education, but tens of thousands of children will begin their primary or secondary education. An out-of-home educational institution is often chosen, so the family can choose to move and choose a new home near the school instead of moving for many years. Although the search begins earlier, the move is often maintained during the fall months. Autumn traffic is also increased by the fact that summer vacations and trips can lead to even long weeks of active property search.
- Phone: After the second flowering in the fall, winter is usually out of season. The real estate market does not stop at all, but due to the cold, the desire of people to buy a house decreases significantly and the traditional preparation of the holidays also diverts energy from buying a house.
1139 Budapest, Béke tér 10-11.
38.5 – 113 m2 surface
35.9 – 87.5 M Ft
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Not only is the season important for sales
The season not only affects sellers and home seekers, but also developers. Seasonality is also strongly noticeable in the number of employment permits, with a number of finished homes generally high in the last quarter of the year. The completion of the year-end project is probably due to the fact that up to hundreds of apartment development companies are trying to close their developments during the (business) year given for administrative reasons.
Epidemic effect and exceptions
The effects of the coronavirus epidemic can also affect the cyclicality of the real estate market. With the spread of the home office, people tend to have more and more time to deal with real estate searches, so dead periods can be shortened from a market standpoint. Due to work from home, there are fewer and fewer trips, the ideal apartment can be moved away from the workplace, so it can also increase the popularity of these more remote properties. As a result of the epidemic, there has been an increase in demand for single-family homes and holiday homes and, if this trend remains unchanged in the future, it could also extend the season of these properties.
“Support for housing renovation and a 5% housing tax can also affect seasonality. As these are fixed-term opportunities, stakeholders must take advantage of them regardless of the season, so that state subsidies can also smooth out seasonal market fluctuations, ”he added. Dávid Valkó, senior analyst at OTP Ingatlanpont.
OTP Hipoteca Bank / OTP Real Estate, senior analyst
After obtaining a bachelor’s degree from Dávid Valkó, a regional settlement development geographer, geography teacher and journalist, and then a second degree as a real estate expert, he has been working as a real estate market analyst since 2000.
Of course, there are exceptions to seasonality, such as premium and luxury properties. In this category, the effect of the seasons is less pronounced due to adjusted demand and supply.
Similarly, newly built homes are in an exceptional situation, where the time factor is also present: the sooner the purchase is made, the lower the final amount. Viously, obviously, buying from a design table involves more risk, so the lowest price at first should include that risk, as well as the hassle of being able to get into it only later.
1119 Budapest, Vahot utca 6.
47.04 – 81.95 m2 surface
56.27 – 111.07 M Ft
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