The fall of the Euribor causes the price of housing

The fall of the Euribor and the cheaper mortgages are causing a warming in the housing market. The real estate portals Pisos.com and Fotocasa have announced that the price of housing in the second quarter of 2024 has shown the biggest increase since the first quarter of 2021, according to the Price Index (IPV) of the INE published this Thursday .

Pisos.com points out that the year started with an exceptional increase of more than 6%, after the growth remained close to 4% in 2023. This upward movement is reinforced in the second quarter, with an increase of almost on 8%, especially 7.8%.

“In the last decade, growth was only higher in the first quarter of 2021,” said Ferran Font, director of research at Pisos.com. In addition, it emphasizes that new housing is the one that increases the most, with an increase of more than 11%, while used housing remains at 7%.

This increase is attributed to a lack of supply, ECB policies and very active demand. According to him, this trend is likely to continue, as it is unlikely that the housing stock will grow significantly in the short term or that the ECB will significantly reduce interest rates.

For its part, Fotocasa reports that the seasonal change is 3.6% and warns of an annual increase of 7.8% in the second quarter.

“These data show how quickly house prices are rising, driven by steady demand, favorable mortgage conditions and ample supply,” explained María Matos, Director of Research at Fotocasa.

Matos also mentions that the reduction in interest rates will be an important factor for another year of rising housing prices, improving the conditions for accessing mortgage credit. According to her, this will be a good time for customers who have been waiting for a reduction in rates, which will revive demand and, if the supply is still limited, prices will continue to rise.

Spain’s COAPI considers “logical” price increases

The General Council of Official Associations of Real Estate Agents of Spain (Coapi) believes that it is reasonable that prices will continue to rise both in new construction and in second-hand housing.

The Coapi emphasizes that it is not surprising that the price of new houses has increased more (11.2%) than used housing (7.3%), due to the lack of supply and the growing interest in housing new, as well as such. increase in the cost of building materials and processes in the last three years.

The General Council of the Coapi expects that the evolution of the average housing price in the coming quarters is uncertain, conditioned by factors such as employment and the purchasing power of families, as well as the lowering of interest rates, which demand could increase. .