The Spanish real estate market continues to break records. According to the National Institute of Statistics of Spain (INE), sales of residential real estate only in the first month of the summer period (June) showed an annual growth of 18.8%. This has not happened since 2007. A total of 58,010 deals were concluded.
At the same time, Spain's economic performance is not so positive and bright. In July, employment declined for the first time in 11 years. Many households are losing their purchasing power, and those with savings are depreciating. For the year since July 2021, the price has fallen by 10.8%.
While the real estate market indicators remain encouraging, analysts see the first signs of a significant slowdown in the sector's growth. The same National Institute of Statistics reports an expected drop in residential real estate sales by 3.8% per month.
According to the real estate comparator HelpMyCash, this downward trend will only intensify over the next few months as a result of the increase in the interest rate on loans by the European Central Bank (ECB) in July.
Although this measure, according to the ECB, is aimed at curbing inflation, it has a direct impact on Euribor and, consequently, causes an increase in mortgage rates. This reduces the demand for housing, at least in the short term.
As HelpMyCash explains, it is logical to expect a slowdown in sales growth, given the rise in mortgage rates and a reduction in household savings. This, however, does not mean that residential real estate transactions will completely stop."
The company adds that the key task of homeowners who want to sell their property as soon as possible is to improve their sales strategy and negotiate with buyers without losing sight of reason.
Despite these prospects, the market is still biased towards demand, which significantly exceeds supply. Sellers need to competently look for buyers while they have the opportunity, but be ready to make special efforts when the situation begins to change and demand becomes scarce. Real estate for sale should always stand out from its competitors.
The latter can be achieved by working on the facade of the building and using online resources, including real estate portals, to maintain the effect of presence in the market. It is possible to conduct virtual tours and show floor plans, photos, videos. And one of the main actions that every homeowner needs to take is to properly evaluate the property for sale.