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The purchase of homes chains two months down in the middle of the Euribor rally

Date: March 3, 2024 Time: 19:06:52

The rise in interest rates and the increase in the cost of loans to acquire housing – the Euribor, the main indicator for variable loans, dismissed April at 3,757% – is making a dent in the real estate market. Home sales fell for the second straight month in March. They did so by an average of 5.7% in relation to the same month a year ago up to 55,778 operations, although new construction was the one that suffered the most, with a decrease of 7.5% (to 10,469), compared to 5.3% that Operations with second-hand properties decreased, totaling 45,309 and accounting for 81.2% of the total.

The data made public this Thursday by the National Institute of Statistics (INE) offer a somewhat different picture if the monthly evolution is taken (March compared to February). In that case, the sale of homes shot up 11%, its highest rise for that month in the last five years. It is true that these exercises have been marked by the first decline in operations in 2019 after five years on the rise, by the Covid pandemic in 2020 and its effects still in 2021, as well as by the war in Ukraine and the energy crises. and inflationary.

By province, the autonomous communities that presented the highest annual increases in the number of home sales in March were Canarias (15.9%), Extremadura (8.2%) and Principado de Asturias (7.2%). Meanwhile, Navarra (-29.1%), Illes Balears (-26.8%) and Cantabria (-17.9%) registered the greatest decreases in operations. Looking at registered property sales, the regions with the highest number of transfers per 100,000 inhabitants are Comunidad Valenciana (227), La Rioja (175) and Región de Murcia (169).

The number of home sales made between individuals in the third month of the year was 37,796, which represents a decline of 8.1% in relation to the same month of 2022. 92% of the homes exposed for sale in March were free and 8% protected. In annual terms, the number of free homes transported by sale decreases by 6% and that of protected ones by 2.8%.

Drop in sales in the first quarter

If the data for the first is taken as a whole, property purchases fell by 2.1% in relation to the same period of the previous year. In total, in the first three months of this year, 162,336 transmissions were sealed. The circumstance arises that the price of housing (new and used) between January and March increased by 6.3% year-on-year to 1,713 euros per square meter and 0.9% compared to the previous quarter, according to the data it manages. Tinsa, one of the main real estate appraisers in the country.

The data recently published by the General Council of Notaries showed to what extent the reinforcement of the sector is a fact. From January to March the mortgage firm sank 26.4% in year-on-year terms. The reason is the sharp increase in the cost of loans that has led to the rise in interest rates by the European Central Bank (ECB) to curb inflation. This increase not only affects variable loans via Euribor, but has also been transferred to the offer of fixed-rate loans that entities put on the market in a context in which the financial turbulence has not completely dissipated either.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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