Buying a home is a transcendent objective for personal and family life. It goes far beyond being an investment because it implies peace of mind and security for the future. But will 2022 be a good year to do it? In this article we answer this question.
What has it been like to buy a home in recent years?
The DBK Sector Observatory stated that the real estate sector experienced a decrease in revenue and profitability because of COVID-19. In 2020, the amount invoiced by 40 major real estate companies was €8,799 million, representing a 6% drop compared to 2019.
In 2021, there was a strong recovery in the sector. According to the CGN (General Council of Notaries) in October 57,000 operations were registered in Spain, experiencing an increase of 14.4% during the year. Up to that month, 539,559 housing transactions were signed.
These data reflect an improvement in the home buying and selling sector. María Teresa Barea, spokeswoman for CGN, attributes the increase to transactions halted during the health crisis period. Also, to more possibilities of access to mortgage loans and better banking conditions for operations.
A change has also been observed in the fact of preferring to buy and invest. It is important to highlight that, according to the INE (National Statistics Institute) and notaries, housing prices have continued to rise and this is a trend that will continue to be present in 2022.
Trends for 2022
To know the trends we reviewed the opinion of a set of experts in the sector:
Favorable outlook
This is what we can expect, according to the DBK Observatory, in the short and medium term. We are in a context of improvement due to having overcome the economic situation, a drop in interest rates and growth in savings levels. These factors allow us to visualize the recovery of demand and prices.
Slight increase in prices
For his part, the deputy director of UCI (Unión de Créditos Inmobiliarios), José Manuel Fernández, affirms that price stability has been observed during the last few months. And that this stability, or a slight increase of never more than 10%, is what is expected for 2022.
He affirms that everything depends on the business course in relation to work styles. If, in view of the improvement of the health situation, there is a 100% return to offices, teleworking, or a hybrid. This decision will mark the supply and demand, possibly there will be an increase in housing prices in major urban areas.
A good time to buy
Because of the new reality, for AEPSI (Spanish Association of Real Estate Personal Shopper), homes are the epicenter of families’ lives. They are convinced that this is a great moment for the real estate sector and are optimistic about the future.
There is a very advantageous change in the application for mortgage loans because financial institutions have more economical proposals. The Euribor remains low and they expect it to stay that way until mid 2022. This undoubtedly boosts the possibilities of buying a home.
Based on these opinions and those of other experts, it can be concluded that real estate trends are encouraging for this year.
Building your home buying scenario
is a very good time to buy a house if you have financial solvency. If you do not have sufficient resources, you can consider applying for a mortgage. Keep in mind that the payment of the installments cannot exceed 30% of your monthly income.
It is necessary to have 20% of the price, because the entities finance 80% of the property value. Additionally, it is required to have 10% for purchase expenses.
In Proyectos Insulares we are experts and we can advise you in an integral way, write to us and we will attend you as soon as possible.
