The sale of second-hand housing will collapse in 2023
Real estate experts forecast an uncertain future in the second-hand home buying and selling market
The sale of second-hand housing will collapse in 2023, mainly motivated by the sharp rise in interest rates that the European Central Bank (ECB) has carried out and those that it will execute in the coming months, directly affecting the granting of mortgage loans.
According to the calculations of the latest analysis, the market could register a decrease of up to 30% in second-hand housing operations, as well as a drop in prices.
The most affected transactions will be those that belong to the lowest price housing segment. For this reason, sellers are recommended to adapt to the changes that the real estate market will suffer due to the rise in rates.
“Based on our own data and the environment, initially it is expected that, despite the current situation, the seller will resist adapting prices next year. However, this decision will not be sustainable over time if you want to be competitive.”
The rise in interest rates
Faced with an economic scenario marked by rising inflation, the ECB made the decision this summer to raise interest rates, directly affecting the Euribor, the index to which most mortgages in Spain are referenced.
Specifically, the financial institution made a rise of 0.5 percentage points, and consequently, from 0% to 0.5%. However, a few months later, in September it again undertook another rise in interest rates. In this case, it raised them by 75 basis points. For this reason, the interest rate for its refinancing operations reached 1.25%.
When buying a home, it is advisable to seek advice from a real estate expert, such as Marbella WOHNEN, who will help you throughout the process and eliminate any doubts you may have.