Housing becomes more expensive by more than 9% attentive to the impact of the increase in rates
The living place became more expensive in Spain 9.2% during October compared to a year earlier, a rise that exceeded 10% in metropolitan areas, according to data published this Friday by the appraiser Tinsa. In addition, in October the price of housing, both new and used, increased by 8.7% year-on-year in the capitals and large cities, 6.3% on the Mediterranean coast and 4.2% on the islands. In the rest of the municipalities the increase was 8.6%.
Compared to the previous month, September, the price of housing registered a rise of 1.6% in October, being in the capitals and large cities where it increased the most, 1.8% inter-monthly. Since the maximum recorded in 2007, coinciding with the “boom” in the real estate sector, the price of housing is 19.5% below. Likewise, since the lows of 2015 the price has appreciated almost 35%.
With this new increase, house prices pick up again in October after moderating its growth in August and September. According to Tinsa, this evolution of prices reflects that residential demand continues to be active, although the increase in interest rates suggests a slowdown in sales in the coming months as a result of the tightening of credit granting criteria by financial institutions and the rise in mortgages.
These factors, which make access to financing difficult, together with the expectations of an economic slowdown, can modify the purchase intention of some households, Tinsa points out. However, despite the moderation in demand, there is limited availability of new-build products.
And it is that this increase in interest rates to deal with the inflationary escalation also reduces accessibility to financing for the construction sector and maintains the offer at moderate levels, as pointed out by the director of the Tinsa Studies Service, Cristina Arias.
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