When house prices will drop this year: “It's going to be a new cycle”
Last year 2022 it was especially good for the real estate market in Spain, con 600.000 transactions, as collected by the portal specialized in living place photo house.
but the year 2023 comes with curves, especially due to the increase in interest rates and prices in general. in january, house prices have increased a 9% compared to the same month of 2022 by inertia, which is independent of the increase in interest rates.
“Besides, although, the increase in interest rates was expected to have a negative impact on home buying, the opposite has been observed, since there is a very high demand, very strong from buyers”, says matthews.
According to data from Fotocasa, It is estimated that the evolution of the price of second-hand housing continue to rise in the short and medium term, due to dynamic demand and a solvent buyer profile, despite rising interest rates.
But for the second half of the year, prices are expected to moderate due to the hardening of real estate credits and the impact of inflation on the saving capacity of families.
“There will come a time when 2023 it will be the year of stabilization, normality will be marked. It's going to be a new cycle”, said Maria Mateos.