House hunting is never easy, especially when it is about buying a home. When it comes to purchasing, it is necessary to consider several factors, including the amount of available savings, salary, mortgage options, and the location of the desired property.
However, there are some other points. When buying a home, factors like the season are hardly ever taken into consideration. Hitting the real estate market during the summer months, when many properties are reserved for vacation, is significantly different from entering the market in the spring, when there is more competition.
Quarantines and other consequences of the COVID-19 pandemic resulted in skyrocketed real estate sales. Last year, more than 500,000 buying transactions were closed. Experts predict that a steady growth in sales will continue in 2022. The price increase will become moderate, but will still persist.
According to experts, current situation creates an optimal economic and financial environment for acquiring a home. With access to up-to-date information in hand, it is only necessary to choose the right moment for the real estate transaction. Fotocasa, a real estate portal, did some research in order to determine the best time of the year for buying a residential unit .
The least recommended seasons are spring and summer
The months with the best weather and climate conditions are usually the worst for a bargain. This is about the spring and summer seasons. Summer is especially unsuitable for the purchase, as there is little offer left on the market. Most of the available units are booked for the tourist season. A significant price increase is associated with a significant supply reduction.
But at the same time, these periods, especially summer, are perfect for market research, “to test the waters”, studying statistics, and selecting offers.
The spring months are also disadvantageous due to the high activity in the market. The purchase is not profitable, but there is a good opportunity to pay a personal visit to the houses of your interest. This is especially important as people who buy their first home usually turn to pre-owned properties on the “second-hand” market. You are most likely to choose this option as well. This means that you need to pay special attention to what you will potentially buy in the future.
New offers to the market and best prices are in October
This is usually the ideal period to purchase a home. Because during this period, there are plenty of available offers on the market that have not been sold throughout the year. Some sellers often provide discounts. The key disadvantage is that this period falls on the Christmas holiday. It means fewer working days and a higher level of expenses. It may happen that you simply do not have enough funds for the acquisition of real estate for yourself during this time, as other expenses require more attention "right here and right now".
Therefore, autumn, especially October, is the perfect time to buy a house. As noted by experts, there is a rise in the number of new buildings, hitting the market in the autumn. It means an increase in supply and a decrease in real estate prices. On the other hand, mortgage lending policies are also improving, as banks get close to the last quarter of the year. So, they are ready to provide loans on more favourable lending terms.
Good time for buying and renting
At this point, after 13 months of a pandemic recession, rental rates rose by 0.8% in annual terms. This rise is caused by various factors, such as the return of college and university students to full-time studies, and the return of many foreign tourists. The continued growth in the number of remote workers also has an impact.
Analysts observe a noticeable shift in demand to available parts of the country, more remote from urban agglomerations and traditionally popular regions. The increase in demand was sharp and led to the same increase in property prices and rental rates in these regions. However, the growth distribution is uneven. Some provinces have significantly higher rates than others. Rental rates have become higher than in major provincial capitals in some regions.
The province of Huelva is in first place in the growth of rental rates. It is followed by: Segovia (15.8%), Lugo (15.1%), Castellón (13.9%), Malaga (13.2%), Badajoz (12.5%), Alicante (12%), Valencia (11.1%), and Murcia (10.5%). Behind are: Toledo (9.4%), the Balearic Islands (7.7%), Girona (8.5%), Avila (6.8%), Las Palmas (6.7%), and Almeria (6, 3%).
A good climate and a high quality of life are two key factors that unite all these provinces and affect prices and rental rates in these regions. At the same time, despite their remoteness from city centers, they all have good infrastructure and connections to major Spanish and European cities.
For this reason, the best areas for remote work are: Huelva, Valencia, Castellón, Malaga, Alicante, Valencia, Toledo, the Balearic Islands, Gerona, Avila, Las Palmas, and Almeria.