Is it a good time to invest in housing?
This year has been a year of great uncertainty and concern, the coronavirus crisis has affected us all to a greater or lesser extent. Many people who wanted to buy a home had to stop searching and, now, at the end of the year, the question arises: is it a good time to invest in a home ?Find the best mortgage without mistakes
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In today's blog we will analyze whether it is a good time to invest in housing and what the current context of the real estate sector is.
The impact of the coronavirus on the real estate market
Throughout the health crisis has had a great impact on the real estate market, with drops of 30-40% in transactions during the confinement period.
Regarding housing prices, a drop of 1.6% could be seen during the months. But the current data is somewhat more encouraging, indicating that at the end of the year and earl1 there will begin to be a market recovery.
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Is it a good time to invest in housing?
It is estimated that in this last period of the year the market will be activated Chinese Overseas America Number Data again, facmore favorably. This is due to several factors:
Urgency to sell. The economic situation has become quite delicate for many people, one of the ways to obtain liquidity is by selling a property. The urgency to sell creates prices to fall and is a very good opportunity to buy.
New construction vs second hand. In recent years, new construction had become competition with second-hand construction, this may end up becoming another factor in the drop in prices.
Rent increase. Many people who were in the process of buying a house have had their dreams cut short due to ERTES and unemployment. Banking entities had to reject many mortgages when interested parties found themselves in these situations. This has created a greater demand for rentals, as people cannot afford to buy. This can become another determining factor for the drop in the prices of homes for sale.
These two factors will cause prices to end up falling further and a drop of up to 9% is expe. The forecast for next year is that demand will gradually recover up to 30%.
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Is it a good time to invest in housing?: Apply for a mortgage
Now that we have analyzed the real estate sector in reference to prices, we will see if it is a good time to invest in housing and get a mortgage .
It is true that, due to the job and economic instability suffered by many families, banks have chosen to tighten the conditions for obtaining a mortgage. Therefore, the best option is to havemortgage brokerswho can help you get the best conditions for your mortgage.
It is a good time to invest in housing
Variable mortgages
As for interest, now is a great time to take out a mortgage, since the Euribor is at historic lows, the average fors -0.497% . This means much lower interest on the mortgage and especially in the first years, which is the period in which the most interest is paid.
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Fixed mortgages
As for fixed-rate mortgages, currently the conditions are much better than what banking entities previously allowed. The most likely thing is that, with the current Euribor index, especially if you are thinking about a mortgage of a few years.
But if you think long term, when interest rates rise again, with a fixed mortgage you will keep paying the same amount. In addition, we can now find fixed-rate mortgages with interest below 2% and with terms of up to 30 years, so conditions have greatly improved.
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It is very important that to know if it is a good time to invest in housing and to apply for a mortgage, you have experts in the sector who can help you throughout the process. If you are interested, do not hesitate to contact us.
Housfy Hipotecas is our financial intermediation subsidiary, we have more than 70 mortgage brokers accredited by the Bank of Spain. Thanks to our agreements with the main banks, we can get the best conditions for your mortgage loan quickly, easily and without you having to leave home.
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