With the start of the new year many people are already thinking about what the mortgage market 2023 will be like. After all, it is important to assess what are the next trends that will dominate this area in the Canary Islands.
Find out how the mortgage market will behave in 2023
In the Canary Islands, several movements are expected when it comes to the mortgage market 2023. After all, this is usually one of the most volatile markets, especially at the beginning of the year. Some of the trends that may stand out are as follows:
Inflation, a dangerous enemy
If anything, the mortgage market has been affected by the deep crisis that resulted from the Coronavirus. The second quarter of this year saw a growth in mortgages. This was in addition to a 35% increase in mortgage loans.
The problem lies in the fact that a large part of these mortgages are subject to late payment penalties. It is for this reason that the 2023 mortgage market will be seriously affected by inflation. It has already created problems this year and only a good winter tourism season is seen as a feasible solution.
Regular house prices
When it comes to property values, no major movements are foreseen for the coming year. In fact, price rises are expected to be no more than 1% above the current level. This suggests that there will be an increase in investment sales rather than mortgages.
It is estimated that the decrease in mortgages will be 17%. The implication is that homebuyers are not interested in this kind of move. The main interest is to invest in properties that can bring profits in the future.MORTGAGE MARKET CANARY ISLANDS
More investment, not more sales and purchases
The fact that there are more sales and purchases for investment does not mean that transactions are going to increase. In fact, the 2023 mortgage market suggests a fall of up to 15%. Moreover, it is expected that this fall could extend into 2024. 
This could worsen if the forecasts of agencies such as Euroval come true. This suggests that the increase in house prices would exceed 1%. We could be talking about up to 6% in the worst case scenario. Of course, this is already speculating on what will happen next year.
Fixed interest rates
Canary Islanders have realised how problematic inflation has become. So much so that fixed interest rates are now a major trend when applying for mortgages. That said, it should come as no surprise that the 2023 mortgage market includes the same.
Quite simply, fixed interest rates allow Canary Islanders to better organise their finances. This has been reflected in the 74% that such rates have reached. Impressive considering the 54% they represented in 2021.
Watch out for upcoming mortgage market trends
It is clear that many of the trends for the 2023 mortgage market derive from the current situation. Interest rates, inflation and buyer interest are the main variables. Of course, this is a very uncertain situation from which news will continue to emerge.
How are you preparing for a new period of mortgage opportunities? Even with the difficulties, this market remains accessible and profitable for those who enter it. However, one must be aware of current issues that are threatening the finances of Canary Islanders.
