- Prices continue to free fall and mortgage conditions are favorable to the client
Buy a home now or wait for 2021? In this dichotomy, buyers who wait with relaxation for prices to plummet after years of rises move. There is no rush on the plaintiff, but yes among the companies of the real estate given the forecasts of the experts who point to a greater collapse in the first quarter of 2021. But to what extent is there truth in this probability? Are customers right by saving positions, or are they risking missing great opportunities?
According to data from the real estate portal Pisos.com in October the average house price in Spain grew by 1,16% year-on-year. So, the pandemic has not prevented cities like Madrid (+3,97%), Barcelona (+0,93%), Bilbao (+5,21%), Sevilla (+5,15%) the Palma (3,27%), protagonists of the saturation of the real estate market in recent years, prices have fallen.
"Prices still do not show the major setbacks that many predicted after the outbreak of the pandemic. If something has achieved the coronavirus, is to further support the role of housing asset refuge, since it is a long-term stable product », Explain Ferran Font, director of studies at piso.com.
Even so, Font augurs a 2021 where the buyer's negotiating capacity will rise considerably. «The owners are freezing prices and declines are still moderate. As the months go by and the rush arrives in the selling part, better opportunities will begin to appear », clarifies.
Because the possible economic and labor consequences that can be generated at the beginning of next year among Spaniards will force many to seek liquidity with the sale of their properties. A scenario that can trigger the real estate sales park and take the increase in supply to post-brick crisis levels. And with it, knockdown prices will come.
But you always have to try not to get carried away by ambition. In fact, Iñaki Unsain, real estate personal shopper and president of AEPSI, points out that from the summer of 2021 prices will recover. It also warns sailors that in large cities such as Madrid or Barcelona it is no longer necessary to wait for 2021 to find opportunities: «You can already find discounts from 15 and 18% », aim.
For his part, the CEO of Tecnotramit, Vicenç Hernandez, reports that this phenomenon will occur especially in the second-hand housing market, because although it points out that currently families are little in debt and there are good financing options, «Home buyers depend on trust, your employment status and savings, so in the residential sector the impact will be much greater ».
What about mortgages?
Regarding financing options, there will be no big changes. Interest rates on fixed income will continue to be low, so the banking sector will not be able to overstretch the appeal of its offers. Even so, the price war is served, since among the companies in the sector they hope to recover part of the ground lost in the first half of the year due to the confinement. «Mortgages are already at a demolition price, for the struggle between the banks. It's not worth waiting for 2021, because at most the fixed income will vary by five or six euros per month ", Apostille Jordi Domínguez, CEO of Finteca.
Following this line, the mortgage advisor explains that fixed rate mortgages they are the best option at this time. «It is not worth risking in variable, for the possibility of saving you 20 The 30 euros some months », concludes.