Post by account_disabled on Mar 9, 2024 23:34:31 GMT -5
The residential market is experiencing a moment of moderation in its activity after two years of a significant increase in home purchase and sale operations after the end of the pandemic. The current inflation environment in Europe has led the European Central Bank (ECB) to raise money interest rates to 4.5% , which has led the Euribor , the main mortgage reference index in Spain, to exceed 4% since last June. A decision that has transformed the credit offer in Spain in just over a year to be able to access a home.
Meanwhile, the supply of houses for sale has Chinese Student Phone Number List been reducing while the demand to purchase one has not stopped growing, as highlighted by Daniel del Pozo, CEO of idealista/data . “We are seeing that, currently, the relative demand over the supply of homes for sale is 16% higher compared to last year's return to school, while the supply of homes on the market has been reduced by 7%. With this panorama, it can be intuited that prices will not go down in the remainder of the year, so we would expect a 2% increase between now and the end of the year at the national level,” highlights the expert in real estate market data analysis. .
Transactions carried out between 2021 and 2022 exceeded those carried out between 2018 and 2019 by 19%, before the coronavirus crisis, according to the INE Property Rights Transfers statistic . For this year, fewer sales and purchases are expected than in 2022, when nearly 650,000 operations were registered, its best figure since 2007, according to the national institute.
“We believe that the strategy of raising interest rates is coming to an end. After the last increase in September, we should begin to see some relaxation for next year, which would mean a return to purchasing expectations and a gradual lowering of debt ratio standards for families and companies,” adds Juan -Galo Macià, president of Engel & Völkers Iberia.
The drop in operations does not mean, for the moment, a paralysis of the housing market, as was experienced after the burst of the 2008 real estate bubble in Spain. Until July of this year , more than 360,000 units had been sold, 5.3% less than in the same period last year, according to the INE. And estimates are to exceed half a million homes sold in 2023, in terms similar to the pre-pandemic period (2018-2019), or even better.
Meanwhile, the supply of houses for sale has Chinese Student Phone Number List been reducing while the demand to purchase one has not stopped growing, as highlighted by Daniel del Pozo, CEO of idealista/data . “We are seeing that, currently, the relative demand over the supply of homes for sale is 16% higher compared to last year's return to school, while the supply of homes on the market has been reduced by 7%. With this panorama, it can be intuited that prices will not go down in the remainder of the year, so we would expect a 2% increase between now and the end of the year at the national level,” highlights the expert in real estate market data analysis. .
Transactions carried out between 2021 and 2022 exceeded those carried out between 2018 and 2019 by 19%, before the coronavirus crisis, according to the INE Property Rights Transfers statistic . For this year, fewer sales and purchases are expected than in 2022, when nearly 650,000 operations were registered, its best figure since 2007, according to the national institute.
“We believe that the strategy of raising interest rates is coming to an end. After the last increase in September, we should begin to see some relaxation for next year, which would mean a return to purchasing expectations and a gradual lowering of debt ratio standards for families and companies,” adds Juan -Galo Macià, president of Engel & Völkers Iberia.
The drop in operations does not mean, for the moment, a paralysis of the housing market, as was experienced after the burst of the 2008 real estate bubble in Spain. Until July of this year , more than 360,000 units had been sold, 5.3% less than in the same period last year, according to the INE. And estimates are to exceed half a million homes sold in 2023, in terms similar to the pre-pandemic period (2018-2019), or even better.