Spain, like much of Europe, is going through uncertain times right now, with high inflation rates leading to cost of living crises, the fallout from the pandemic and the implications of the war in Ukraine. But what does all this mean for the housing market?
Everything over the last couple of years has risen in price, from utility bills and food to mortgage repayments and travel and house prices still continued rise but what will happen to property prices this summer in Spain?
If you’re thinking of buying a house in Spain in the near future, you’ll have to factor in a lot of considerations, including predictions about what the housing market will do over the summer. Should you wait to buy in case prices fall significantly, should you decide quickly in case they skyrocket or will they stay relatively stable?
While the market can be difficult to predict in uncertain economic times, the experts do have some general forecasts for the Spanish property market this summer.
Miguel Cardoso, chief economist for Spain at BBVA Research predicts drops in both sales and prices, although not at the same intensity. He believes there will be a sharp contraction in sales, but not in prices.
The research team forecast that the price of property will fall by less than four percent across the country as a whole, staying close to the “long-term equilibrium level”.
Economist Gonzalo Bernardos from the University of Barcelona believes we will see housing costs fall this summer. He predicts that the escalation of prices in variable mortgages “will greatly discourage investors”, which will translate into a drop in property prices.
But, not everyone has predicted the same, however. At the end of May, the Bank of Spain announced that they expect house prices to grow between 0 and six percent in the coming quarters.
With differing opinions between experts, it can be difficult to know what to do, after all they predicted a 10% to 15% drop during the pandemic which never happed, but all seem to be in agreement that whether house prices fall or rise, it won’t be by much, and the market remains relatively stable.
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