Will prices decrease or rise? It is the question that many people, who are looking for a new home, are concerned about. Should you wait with purchasing, or should you seize the opportunity when your dream home comes along?
The major banks once again expect real estate prices to decrease. However, the decline in prices, which has been predicted year after year, has not materialized so far. In 2020, the coronavirus pandemic (and the lockdowns) did not lead to a price drop, but instead turned out to be a driving factor that pushed prices to record highs.
For 2021, a price decrease was predicted again: according to the banks, the housing market would be impacted by the coronavirus crisis with some delay. Particularly, the increasing unemployment and reduced household income were expected to put downward pressure on real estate prices. The opposite turned out to be true.
Prices have risen again
Once again, this prediction has proven to be incorrect. The notary barometer shows that, in the first 9 months of 2021, prices are still on the rise. In Flanders, buyers paid on average 4.8% more for a house, and apartment prices increased by 3.4% (compared to 2020). Economists expect this upward trend to continue in the near future, partly due to borrowing remaining cheap due to low interest rates. Real estate also remains an attractive option for investors as an investment due to its stable nature.
High demand remains
Furthermore, we also notice, at habicom, that the demand is still greater than the supply. Especially the demand for homes with a garden or apartments with a nice terrace is significantly higher than the supply. Therefore, if you come across your dream home, it is best to consider your personal situation and possibilities and not wait to make the purchase.