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Decline in single-family home sales: real estate market under pressure
Discover where you can find the cheapest single-family homes in Austria. Learn how inflation and interest rates affect the real estate market. Find out now!
Decline in single-family home sales: real estate market under pressure
The real estate market in Austria has been showing a noticeable slowdown for around two years. During this time, various factors, including inflation, rising interest rates and stricter lending guidelines, are responsible for the declining sales figures. Current data from Remax for the first half of 2024 proves this trend: While 4,633 single-family homes were sold in 2022, the number of sales in 2024 fell to just 3,840.
This development has a significant impact on the market landscape, as fewer transactions not only mean less choice for potential buyers, but also a change in price dynamics in different regions. Buyers are currently faced with the challenge of finding properties that meet their needs, while at the same time financing is becoming more difficult due to increased interest rates.
Reasons for the decline in sales figures
A key reason for the falling sales figures is the rise in inflation, which is leading to higher costs of living in many areas of life. This has resulted in many families having less financial flexibility to purchase a home. Combined with higher interest rates on debt, these conditions could mean fewer people are willing to take out a mortgage.
In addition, banks have tightened their lending guidelines. These measures are aimed at ensuring that potential borrowers are able to repay their debts even if interest rates rise. However, this means that fewer people meet the criteria for a loan, further reducing the number of buyers.
On the other hand, these developments could lead to a stabilization of the market. Some experts believe that such a balance could eventually lead to a recovery once the economic situation stabilizes. However, for many, the current situation remains frustrating as the dream of owning their own home becomes more and more distant.
The decline in sales recorded by Remax is a clear signal and shows how external economic factors can significantly influence the real estate industry. It remains to be seen how the market will develop in the coming years and whether demand for single-family homes can increase again if the economic conditions improve.