Buying homes is having its best September since 2007

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However, the collapse of new construction means that the growth rate in the sector has come to a standstill compared to previous months

The energy crisis or the escalation of the Euribor in September failed to bring the real estate market to a standstill, which is beginning to show signs of a certain exhaustion. The decision by many buyers to advance home purchases in case credit becomes even more expensive in the coming months caused 57,333 operations to close in September, a number not seen since September 2007, just before the bubble burst . were exceeded.

However, the data invites caution. The reason is that although sales have been rising for 19 months in a row, the growth rate recorded in September, 6.9% year on year, has slowed significantly compared to the previous months. For example, in August, these operations grew 15%, according to National Statistics Institute (INE) historical series.

It’s more. The number of registered operations in September is almost the same as in August, when 57,327 operations were registered.

These figures coincide with the forecasts that experts in the sector have been anticipating for months: the escalation of interest rates and the blow of inflation in the budgets of the Spaniards will stop the upward trend in the real estate market. But that doesn’t mean the industry will collapse. Not much less. That same week, Pisos.com experts predicted the year would end with 620,000 units sold, slightly less than the 660,000 expected at the start of the year, but a figure more than enough to avoid market contraction fears.

A change that is reflected more strongly in the statistics is the preference for used homes over new construction, traditionally more expensive. Specifically, second-hand home sales rose 10.7% year-on-year in September. A figure that contrasts with the 7.8% drop in new construction. This is the biggest drop in this market segment since July 2020, in the middle of a pandemic.

Despite this, the figures are still positive when taking into account the accumulated data for the whole year. Specifically, home sales increased by 18.3% in the first nine months of 2022, with growth of 21.3% in used homes and 6.6% in new construction.

Source: La Verdad

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