Home sales continue to rise 2022
The rise in house prices, inflation and the conflict of the Ukraine war are generating oscillations in the housing market. It is anticipated that the 2022 closing with an increase in the price of housing between a 2% and a 4%. Worse financing conditions by banking entities will result in a drop in sales.
However, not all these speculations are correct. Industry experts agree that this is an excellent time to sell. The second half of the year 2022 can be decisive in terms of an increase in the number of operations. It will be facing 2023 when housing prices begin to stagnate in anticipation of a slight stabilization of the market already in view of the 2024.
How the war in Ukraine affects the price of housing
The recent war between Russia and Ukraine is generating an expansive wave in the markets of raw materials in the world. This has a direct impact on the brick industry and the construction of new-build housing. The tension in the production of supplies is generating an inflation that is not known how long it will last.
To this we add the number of displaced people who come to the peninsula in search of asylum. Many Ukrainians are accessing rental housing and are considering the purchase of real estate in our country, due to the uncertainty of returning to their country of origin.
This current instability in the real estate market is generating a brake on sales which will be aggravated in 2023 with stagnant prices and rising inflation. That is why many owners are launching the sale of properties before the end of the year, in anticipation of a possible bubble.
We have noticed a special increase in the sale of homes russian owners in the area of the Costa del Sol and Alicante with the aim of obtaining liquidity and being able to face the difficulty of not obtaining money from your country, due to the sanctions and capital blockade that the European Union has imposed on Russian citizens. Además, the devaluation of the ruble is being a key factor for many Russian owners to want to transfer their economy to euros.
However, Some experts affirm that this war scenario will have no repercussions at all on the development of real estate sales in Spain in the second-hand housing sector. What they do foresee is a stagnation of prices due to the difficulty imposed by banks in granting mortgages, so very possibly, we will see some margin of balance at the beginning of 2023.
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The time of sale of a property is extended due to the increase in housing prices in 2022
El 2021 ended with a high rate of real estate sales and the 2022 it is expected that these will not stop, However, the time invested in the sale of a property has been extended (de 4 a 6 meses).
The main cause is the granting of mortgage credit to consumers, and that they spend much more time deciding and visiting the homes that are of interest to them.
It won't be until well into the 2024 when we begin to notice a slight drop in prices, that will not affect all sectors equally. While new construction housing will continue to rise due to the cost of materials and production, Second-hand housing is estimated to reach its peak in the first quarter of 2023. In the same way, the rental price will continue to rise, so many people will continue to opt for investing their savings in the purchase of a home.
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