The post-pandemic housing market is turned upside down and the consequences for homeowners will be severe.
During the lockdowns, and immediately afterwards, home sales boomed. Families entered into a “race for space”. demand for second homes soared during the pandemic. All seemed well for homeowners as sales boomed and prices skyrocketed.
However, following the myriad rate hikes in 2022, the cost of debt for more expensive homes has skyrocketed. Demand has fallen and the gap between flats and houses has narrowed. The Center for Economics & Business Research, a think tank, expects this to continue and translate into sharper price drops for houses versus apartments.
Such a gap will have serious consequences for the country’s housing market. De Telegraaf takes you through the numbers.
Prices will fall faster
Agreed sale has been fall sharper for houses than for flats. Home sales this month were 16.5 percent lower than the same period three years ago, compared to a 1.6 percent decline for condominiums, according to analyst TwentyCi.
Aneisha Beveridge, of real estate agents in Hamptons, said flat sales fell to an all-time low last year but have generally recovered to pre-Covid levels.
The market for apartments, especially those without outdoor space, fell during the pandemic amid a “race for space” that saw more buyers looking for homes.