Housing in Europe could get cheaper in the near future

Home prices in the eurozone fell 1.7% year-on-year and in the European Union by 1.1% in the second quarter of 2023, according to Eurostat.

The trend in the European real estate market is poised to change, with homes cheaper on average than a year ago, but there are some changes in the quarterly figures indicating that the decline may not be long-lasting. The second quarter of 2023 was the first time in seven years that house prices in Europe declined year-on-year, according to the latest data from Eurostat, the European Union's statistical office.

The house price index fell by 1.7% in the eurozone and 1.1% in the EU between April and June compared with the same quarter a year earlier. The figures follow a year-on-year''growth of 0.4% and 0.8% in the euro area and the EU, respectively, recorded in the first three months of this year. However, prices started to rise in quarterly comparisons: by 0.1% in the euro area and 0.3% in the EU between April and June 2023. Since the beginning of the last three months of 2022, house prices have fallen for two consecutive quarters: by 1.4% in the fourth quarter of 2022 and by 0.7% in the first three months of this year, before seeing a slight increase in the second quarter of 2023.

Which countries have experienced the strongest price declines?

Nine EU countries recorded price falls in the second quarter of 2023 compared to the previous year, but house prices continue to rise in the remaining 17 member states.