Why is it a good time to buy a house in Marbella?
The current situation of low interest rates and controlled price growth motivates many people to decide to buy a home. This trend that began in 2021, according to experts, will be consolidated in 2022
The real estate sector has been one of the fastest recovering after the break caused by the outbreak of the pandemic. This has been reflected in the increased interest of Spaniards in buying a home throughout 2021. A trend that, according to experts, will continue this year, marked by moderate price growth and favorable financing conditions. But what are the factors that indicate that it is a good time to buy a house?
Rapid recovery of the real estate sector
The purchase and sale operations of 2021 have exceeded those of 2020 by a high percentage. The latest provisional data for November, collected in the Real Estate Registry statistics prepared by the College of Registrars, indicate that the penultimate month of 2021 closed with a total of 93,178 purchase and sale operations, this represents an increase of 18.7% compared to the same period of 2020 and 25% more than what was registered in 2019. These figures offer an image of a sector that has overcome uncertainty after the outbreak of the pandemic faster than others, boosting buyer confidence.
Favorable interest rates
The favorable conditions offered by banks when granting mortgages is another point that shows that it is a good time to purchase a new home. According to the latest data from the National Institute of Statistics (INE), 36,249 mortgages were signed in October, that is, 27.9% more than in the same period of 2020. As for the mortgage loan modality, a change in trend: Spaniards opt to a greater extent for fixed-rate mortgages (67.2%), those in which the monthly installment remains unchanged throughout the life of the loan, compared to variable-rate mortgages (32.8 %), whose share varies depending on how the Euribor evolves. Under standard conditions, fixed-rate mortgages have higher interest rates than variable-rate mortgages. However, in the current context, there are entities such as Banco Sabadell that have more attractive fixed-rate loans than variable-rate ones.
Moderate price growth
One of the most important factors when making the decision to buy a home is the price. According to Idealista, in 2021 the average price per square meter in Spain closed at 1,829 euros, which is 2.8% more than in December 2020. However, according to sector specialists, an increase of significant prices for the coming months of 2022. Although many agree that there may be increases of around 4% compared to last year, especially in the most demanded areas such as large cities and coastal areas.
In any case, before making the decision to buy a home, it is convenient to analyze all the factors that influence it, such as the expenses involved, the location or the financing possibilities. For this reason, it is advisable to seek professional advice from an expert, such as that of the bank, which will guide the future owner and help them resolve any doubts that may arise during the process.