They take it off their hands. Literally. The housing market lives one of its best times since before the 2008 crash. The end of the pandemic has brought with it a hunger for housing that is making itself felt and much.
It is estimated that the available supply of housing has been reduced by 17% in the last year, since since the pandemic situation was improving in 2021, buyers jumped into the pool. In some areas more than others, as always.
The point is that now houses last hours for sale and that prices are being paid that hardly entail a discount (people no longer negotiate the price because they know that it can be taken away). This has led to a house price increase 3.7% in 2021according to the INE, and it is estimated that the increase will be 10% at the end of 2022due to decreasing supply and inflation.
Therefore, gentlemen, if you are considering selling your house, now is the time. Because now they can achieve the desired profitability that has suffered in recent years.
How the market has changed in just a few months
Precisely, a few months ago and seeing the boom in the sale of houses, we warned that it was not yet a good time to sell a home if you wanted to recover the initial investment and obtain a surplus.
Since 2008, no one had been able to make a profit by selling their house despite the economic recovery, since prices had not reached the time of the bubble. But now things have changed.
Because, as we said, the hunger for real estate has skyrocketed. The Covid, so disastrous for some things, has been a repulsive for this market. Being at home for so long has made many want to change their lives, especially given the rise of teleworking.
In addition, the closure has led to the possibility of savingsomething unusual in our culture. The impossibility of making plans and, also, the fear of the crisis, triggered savings in Spanish families al 14,8% of your disposable income, the highest rate in the historical series. In 2021 it fell by 3.7%, to 10.9%, already showing the ravages of inflation. For this 2022 it is calculated that the savings rate go down to 6.9% of the rent available because we all know how the prices are.
Thus, the moment is now. Never before has so much money been available. In addition, employment has grown in this time, the ERTE have already left and a small economic euphoria has been unleashed that has been clouded by the war in Ukraine.
But, be that as it may, 2022 will be a good year for real estate. With exceptions, of course. Large cities (Madrid, Barcelona, Valencia, etc) have experienced this reduction in available housing. Curious is in fact the case of Madrid, because its surrounding cities have suffered even more from this process (the oil slick phenomenon).
Nevertheless in inner cities the opposite effect occurs. Again the ghost of the ’emptied Spain’ lurking. In provinces such as Soria, Cáceres, Palencia, Huesca or Lugo, the available supply has actually doubled. The inequality is obvious.
Therefore, it is in large cities, surrounding areas and coastal areas where greater profitability can be achieved in this regard. Right now, it is around 6.5%, as we say, depending on the area. This moment is key since the uncertainty of how such high inflation will affect the Spanish economy in the long term does not allow us to predict whether this trend will continue in 2023.
Source: El Blog Salmón by www.elblogsalmon.com.
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