A change is brewing on the single-family home market
In the first half of the year, prices for single-family houses in Austria were still rising, sales were declining
For many Austrians, the single-family house in the countryside is the dream home par excellence. Corona has fuelled this longing once again. Demand has recently clearly exceeded supply in many parts of the country.
In the first half of the year, the market for single-family houses therefore continued to shrink, as can be seen from a property price index by Remax, which is based on land register data from Immo United: Across the country, more than 4,600 houses changed hands, meaning that the number of houses sold fell by 2.7 per cent compared to the same period last year. Fewer houses were last sold in 2014. This year, sales fell particularly sharply in Upper Austria.
However, prices have once again risen significantly in the first half of the year; the typical single-family house in Austria costs 347,000 euros, 13 percent more than in the same period last year. Houses are cheapest in Burgenland and Styria, most expensive in Vienna and Tyrol. The front-runner remains the district of Kitzbühel, where a house costs an average of 2.375 million euros. However, there was also a slump in sales here. The total sales value for single-family homes in the first half of the year was 1.91 billion euros, almost six percent higher than in 2021.
It should be noted that for the current real estate price index, only transactions in the first half of the year were examined; many of the sales contracts were concluded between November of the previous year and May of this year, according to Remax, “i.e. a time with different global political and economic conditions and prospects than at present”. At that time, some owners were still putting off the sale.
Relaxation in sight
According to the brokerage firm, this has now changed. Heirs in particular are now putting properties on the market more quickly in order to sell while the economic situation is still relatively good. The supply on the single-family house market has increased in the last three months, emphasises Bernhard Reikersdorfer, head of Remax Austria, which will lead to a “noticeable relaxation” in single-family house prices. For many people, however, owning a single-family home will probably remain a dream. Due to rising costs of living, inflation, the interest rate situation and tightening of home loans, the number of people who can afford to buy a house has decreased significantly.
Source: Standard.at, 02.11.2022
About Mosam Real Estate
Mosam Real Estate was founded in 2017 and is headquartered in Vienna. The owner-managed company sees itself as a comprehensive real estate service provider and residential developer. The focus is on the high-quality marketing of residential and commercial properties throughout Austria, as well as the renovation and construction of residential buildings, taking into account the current possibilities of sustainable and climate-friendly building materials and construction methods.
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