House sales in Spain made their decline in July even more pronounced chain until the interannual rate drops to 10.5%. negative for six months in a rowand recorded 48,303 operations (this month’s lowest figure since 2020). The increase in interest rates and the resulting increase in financing costs.
Additionally, there was a 10.5% decrease in housing sales compared to the previous month (June). As such, there has been a 5.3% decline in transactions so far this year, according to INE data.
In July second hand salesis the most numerous, representing almost 83% of the total. They continued their decline, recording a decline of 11.2% Compared to the same month in 2022, new constructions decreased by 7.4%.
“Healthy” market
Despite these data, real estate prices continue to rise and real estate portals assured that the market was in what could be described as a “healthy” environment.
Idealista spokesman Francisco Iñareta said in a statement that the data continued to record a “significant decline” compared to 2022, which was a record year, so July data showed that the market was trending towards “normalization”. He wants no “disaster reading” to be made.
Fotocasa Research Director María Matos focused on new housing data, which showed an annual decline “for the first time” this July. Despite this, he reassured that new construction “continues to experience an unprecedented boom” since the start of the pandemic and said the year is expected to close with sales of around 500,000.
When will prices drop?
Pisos.com Research Director Ferran Font emphasized that the data “continues” to confirm the “cooling” predictions for 2023, but assured that the predictions are still ongoing. Time will tell when this slowdown will be “clearly reflected in prices.”
Economics reporter Sandra López Letón was among those featured in the episode. Why is it the worst time to buy a house? from podcast Today in El País : “The logic of the market It tells us that prices should stop rising and even fall slightly“Given that mortgages are expensive, both fixed and variable, he recommends waiting a bit to buy.” According to Letón, “As we look at the last period of the year and especially 2024, we will start to see that prices may increase.” “They can’t hold on any longer (they’ve already held on long enough) and they’re rising very little, or even falling.” Of course, the journalist warns “They won’t be very aggressive price reductions and they won’t be generalized.”
Source: Informacion
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