The escalation of the house: why prices are resisting down after the pandemic

The housing market has long since given the impact of the pandemic. Sales and mortgages register record increases each month and these figures were added yest

The escalation of the house: why prices are resisting down after the pandemic

The housing market has long since given the impact of the pandemic. Sales and mortgages register record increases each month and these figures were added yesterday, prices, which in the third quarter experienced a year-on-year rise of 4.2%, the greatest advance of the last two years.

The data, extracted from the Housing Price Index (IPV) of the National Institute of Statistics (INE), not only reflects the dynamism that lives brick in Spain, but also a change of trend up the product of that effervescent activity. "It is a significant rise that is in accordance with the great demand to buy housing that has been generated after the impact of Covid-19 in Spain and that we see how it is channeling from the beginning of the year at very good rhythm with the bush shops," he says María Matos, director of studies and spokesman of the Real Estate Portal Photocasa.

Its forecasts aim that the trend will remain while the tone of the market remains the last months. "While continuing this intensity in the market, it is possible that prices continue to present increments, although we do not expect them to be very accused ascent," adds the expert.

In other words, housing prices have no visos to go down in the coming months and there are several factors that explain that this is like that. On the one hand, the high demand for buyers before the need and desire to look for broader, bright and far from the urban nuclei that meet their needs.

"There has been a change in the housing preferences of individuals who makes us now value more than ever housing," adds Matos.

On the other hand, the profitability left by real estate assets, especially in a context of inflation in which price increases are attractive -and performance- to most financial assets. The brick, again, shows its refuge character and also leaves returns that depending on the source oscillate between 5% and 7% on average throughout Spain.

The last of the factors that sustains the increase in prices are the attractive financing conditions of banks when granting mortgage loans. The enormous liquidity injected by the central banks to cope with the pandemic and interest rates at historical minimums favor that the entities keep the mortgage tap active.

Despite these figures, in the sector they clear doubts about a possible real estate bubble similar to that experienced in the first decade of the century. "IPV data show a rhythm rhythm that is below the IPC. Despite the abound of the number of purchase and mortgage number, the moderation of prices supposes the confirmation that, far from being overheating or from Direct towards a new bubble, the market is overcoming the pandemic and standing at the levels that would have not been suffered from the health crisis, "says Francisco Iñaroya, spokesman for the idealistic real estate portal.

The prices for the sale of homes accumulate and a series of 30 trimesters of interannual rises. Restrictions and uncertainty during the worst months of the pandemic softened increases up to 0.9% of the first quarter of 2021, the lowest rate in seven years, but that was also a turning point.

Returning to the third quarter of this year, the annual rate of new housing lowered almost two points, up to 4.1%, while the variation of the second hand reached 4.3%, almost one point and a half above The previous quarter registered. At the quarterly level, the variation of the general IPV between July and September is 2.1%, while the prices of new housing rise 2.8% compared to 1.9% that do so those of second housing hand.

By communities, all autonomies presented positive interannual rates and higher than those of the previous quarter, except the Basque Country, which cut it 1.2 points, up to 1.4%. The greatest increases in the annual rate were recorded in La Rioja , Andalusia and Galicia, with rebounds of 2.8, 2.4 and 2.3 points, respectively.

Date Of Update: 10 December 2021, 21:00

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