The current economic context is leading potential property buyers to ask themselves if now is the right time to buy, or if it would be better to wait until 2023.
An idealista report has found that when buying a home, most consultants believe that, despite the current circumstances, it is a good time. Francisco Sierra, general director of Casavo in Spain and Portugal, affirms that, if we analyze the historical correlation between the Euribor and sales, the rise in interest rates does not have a great impact on the number of transactions.
“We believe that 2022 will continue to be a good year to buy a property, as the measures promoted by the ECB to contain inflation will be offset by greater activity from private and institutional investors.” He claims that despite some reports suggesting that 2023 will be a year marked by a 15 percent drop in sales, the real estate market will stabilize.
Jesús Duque, vice president of Alfa Inmobiliaria, told idealista that in the next six months the economy could cool down, as a result of the Ukraine War and all the events it generated in the world economy, such as the ECB’s decision to increase interest rates interest, which is expected to continue to rise in the coming months. For the specialist, those who want to buy must realistically assess whether a future increase in home loans could have a very negative impact on their financial situation. And evaluate which of the two options they prefer: whether to buy at a higher price and lower interest or vice versa.
Should you sell now or later?
Jesús Duque explains that in the coming months there may be more difficulties in accessing housing credit, higher rates and in some cases greater doubts about the labor market. “My view is that anyone who can sell now and can’t or won’t wait a year or two to sell should do it now.”
For 2023, Casavo foresees an improvement in the sustainability of the real estate sector, motivated by the measures currently promoted to contain inflation, the effects of which we will begin to see in the medium or long term. “That is why when we talk about the best time to sell a home, it should be noted that we are at a particularly favorable time for it, which will continue throughout 2023 as a result of the current economic context, which drives sales in the face of greater credit ”.
What will happen in 2023?
At Alfa Inmobiliaria, its vice president believes that in 2023 there will probably be better offers and lower prices to buy, but also many families will have more difficulty accessing a mortgage and interest will be higher. “This price drop could be for a short period of time,” he says.
He recommends that, especially for people considering a fixed-rate mortgage, it’s best to shop now, even though you’ll likely be able to find slightly lower prices in a few months.
According to Casavo’s analysis, the rise in house prices due to the influence of inflation will be offset by the measures promoted by the European institutions to combat this economic situation, giving rise to a very positive scenario in the medium and long term. “Given market movements, we expect the rise in interest rates to be accompanied by a slight increase in sales, as housing becomes a ‘safe haven’ in the face of uncertainty,” he says.