The interest rate hike initiated by the European Central Bank in March 2022 and its correlation with Euribor, the interbank interest rate referenced by most mortgage loans, are increasing. impact on the housing market. While the average rate on mortgage loans is 3.24%, according to the National Institute of Statistics, more and more Spaniards (and foreigners) are choosing to buy a home without financing.
According to the latest report from valuation company UVE Valoraciones, by now in 2023 Annualized figures, 204,859 units purchased homes without mortgage financing. Since the pandemic emerged in 2020, the number of home sales conducted without access to financing has increased, almost doubling the number of such operations. Compared to mortgage originations falling in recent months, the increase did not slow down last year.
The number of buyers financed will not increase in the short and medium term. “Those who can buy a house in cash are not affected by the effects of increasing interest rates and do not prefer less profitable alternative investments. In addition, increasing rents are also a risk factor. Incentive to invest in heritage professionsTo defend against inflation,” they state from UVE Valoraciones.
For the first time in the last four years, The proportion of mortgaged homes purchased fell from 70%Until it reaches 67%. This figure is lower in newly built houses. According to the ‘New Construction Home Buyer Profile 2022’ study published by developer Aedas Homes a few months ago, only 52% of buyers financed the acquisition of their property; this amount is higher than one second. property on the market.
Provinces where fewer houses are purchased with mortgage
‘There is a trend among the provinces that pay the most to Tocateja: largest tourist component and those that can be classified as ‘Evacuated Spain’. At the other extreme are the Basque Country, Madrid, Seville, Barcelona, Valladolid and Zaragoza, where the percentage of purchases without financing is low, according to UVE Valuations.
Alicante, Malaga, Valencia And barcelona four provinces here More homes purchased debt-free: total 33,477, 16,144, 13,859 and 13,859 respectively. This list also includes Murcia (9,868), Almería (7,073), Madrid (6,716), Girona (6,677), Tarragona (6,669), Santa Cruz de Tenerife (5,968), Castellón (5,860), Balearic Islands (5,439) and Granada . (5,347).
In addition to being the province with the highest number of mortgage-free housing purchases, Alicante It is also in percentage terms: approximately, Only one in three homes changing hands requires doing so through debt (65%). Other provinces that exceed the 50% rate, that is, where one in every two houses is paid to ‘tocateja’, are Ávila (62%), Zamora (56%), Castellón (52%), Cuenca (51%). , Lugo (51%) and Soria (50%).
At the other extreme are the provinces where property acquisition is most financed. Buyers take out mortgages in Gipuzkoa (95%), Vizcaya (94%), Álava (92%) and Madrid (91%). The percentages are high; It is also over 70% in Seville, Melilla, Barcelona, Pontevedra, Ceuta, Zaragoza, Valladolid, Córdoba and Badajoz.
Does mortgage shortage affect prices?
The study prepared by the appraiser shows that: where the proportion of financed acquisitions is higherAs in Madrid, Barcelona, Basque Country or Seville “Purchase prices are more likely to see a decline.”. “Madrid, Barcelona, Basque Country and Navarra show very low growth in transactions compared to 2019. What can save them from the price decline is that they are regions with a housing deficit. In tourist areas, the purchase rate is high. In the absence of financing “it is very likely that prices will continue to rise. “For those looking for homes for their own use in these areas and having to finance them themselves, the situation will get worse: higher prices and lower purchasing power,” they concluded.