MADRID, 1 Nov. (EUROPA PRESS) –
The sale of homes in Spain is recovering after the impact of the health crisis. In June, 65,000 operations were closed, which is 71% more than in the same period of the previous year, according to the General Council of Notaries (CGN). Although it is true that at this point in 2020 the Spanish economy was burdened by mobility limitations to reduce the number of coronavirus infections, these data also highlight the positive effects that the recovery is having on the real estate market.
Forecasts for the growth of the economy predict that this upward trend in the number of home sales will continue. With this in mind, is it time to buy a home?
A favorable conjuncture
There are several factors that explain this growth in the demand for housing:
1. The improvement of the situation after the outbreak of the pandemic
Progress in the vaccination campaign together with the arrival of European aid through the European Next Generation Fund EU have served to skyrocket consumption. This has caused that many families who had postponed the decision to buy a home have finally decided to take the step.
2. Interest rates
Financial institutions continue to offer good conditions for underwriting mortgage loans, with very low interest rates. Thus, at present, three out of four operations are carried out through a mortgage. In June alone, around 35,000 were subscribed, representing a year-on-year growth of 87%, with an average amount of around 142,000 euros.
Calculator: discover what interests you more, if the fixed rate or variable rate mortgage
3. Prices
Postponing the purchase of a home excessively can be a bad decision from the economic point of view, given that it is quite likely that there will be a significant increase in prices over the next few months.
In addition, after the outbreak of the pandemic, property prices adjusted. According to data from the Ministry of Transport, Mobility and Urban Agenda (Mitma), in 2020 prices fell by 1.8%, to 1,622.3 euros per square meter.
Many experts say that, nowadays, it is possible to find interesting opportunities in the sale of homes, especially in large cities, although it is quite likely that prices will soon grow significantly. The approximate consensus among different analysts indicates that prices in 2021 will rise above 4%, although the increase is likely to be even greater in 2022, especially if the current context of mortgages with low interest rates continues.
In any case, before contracting a mortgage to acquire a home, it is convenient to analyze all the expenses involved in the operation, both from the point of view of the monthly payments to be paid and in relation to commissions and tax charges. This involves comparing different products and entities, taking into account the pros and cons of opting for a fixed-rate or variable-rate mortgage.
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