The first signs that the real estate market is cooling down are there. And that is good news for those looking for a new home.
After the lockdowns we have experienced, real estate prices in Flanders have phenomenally increased. It seemed like there was no stopping it. But there appears to be a brake after all.
In the first 3 months of this year, there was only a 1.2% increase. In short, it seems that our real estate market is heading towards stabilization.
The rising interest rates, but also the increasing material prices, certainly contribute to this cooling down. We also notice at habicom that prospective buyers are very aware of the fact that renovation costs have increased significantly. In habicom's handyman service, we see that material prices sometimes more than double: For an OSB board that cost 12 euros a year ago, you now have to pay 28 euros.
Nevertheless, it is still a good time to sell real estate. The average real estate purchasing power of Belgians remains high compared to other European countries. A Belgian family consisting of two persons with an average income can purchase a 98m2 house in Belgium, compared to only 64m2 in France and 66m2 in Germany.
Investing in real estate today is the best way to protect yourself against exceptionally rising consumption prices. If you buy today, you lock in the cost of your credit and the purchase of your real estate for the next 20 years. With inflation, incomes but also real estate prices (and rental prices) will rise over the years.
Rise in real estate prices is slowing down
