Spanish families need 7 and a half years gross salary to buy a house And they need to devote the first year to this more than 39% of your annual gross disposable incomeThis is the biggest effort recorded since the end of 2011, according to the latest data managed by the Bank of Spain.
In fact, due to the unknown 2023 closing data, the effort rate of Spanish households the increase did not stop As interest rates also rise and mortgage financing becomes more expensive.
In this inflationary context, although the increase in rates is accompanied by cooling and issuing of sales mortgages (more than half of which is paid in cash) prices have resisted, albeit with more moderate increases. However, record values were broken or approached in some markets.
If they must allocate 36 percent of their salary at the beginning of the year to pay off the first-year mortgage, This rate has gradually increased 39.2% by the end of the third quarter.
With this new increase, household labor was not as high as it has been in twelve years, at 39.7% at the end of September.
And this since June 2021 percentage that households must allocate didn’t stop growing.
To measure the household effort, the Bank of Spain takes into account the installments payable in the first year after the purchase of a standard house financed with a standard loan of 80% of the apartment value.
historical series
According to the historical series managed by the organization, which began in 1970, the greatest effort was recorded in 1990 and 1991, when more than 72% of the average household’s annual disposable income was required.
Without going back that far, in the third quarter of 2008, coinciding with the outbreak of the epidemic, housing bubble Leading to a strong economic crisis, families needed almost 55% of their income in the first year.
All this despite the fact that experts recommend that annual income allocated to buying a home should not exceed 30-35% of income.
On the contrary, minimum effort was recorded in mid-1999 at 25.3%.
The number of years continues to decrease
What you need to buy a medium-sized house in Spain right now 7.5 years of gross incomeA decreasing period since September 2022.
This figure contrasts, for example, with the time required to buy a home at the end of 2007, the last of the property boom, when a historic record of 9.45 years of gross salary was set.
In the first three months of 1987, the minimum period was 2.96 years. Year for which the Bank of Spain has records for this indicator.
Despite these progressive declines, the number of years required to buy a home has remained above 7 years since mid-2020.
House prices are resisting
According to the latest data from the National Institute of Statistics (INE), housing prices Increased by 4.5 percent in the third quarter It has recorded 38 consecutive quarters of growth compared to the same period in 2022.
The Ministry of Housing estimates that the increase in house prices will be 4.2%, reaching 1,812.4 euros/m2.
By the end of the third quarter, Euribor, the index most mortgages reference, rose to 4.149% in September. There was a second monthly decline of the year with 4.022 percent in November, and in December it fell below 3 percent for the first time in the last six months, falling to 3.679 percent.