It's the million dollar question. Is it time to buy? Everyone, at some point, we have asked this question. Through the analysis of certain economic indicators, we can estimate whether we are really facing a healthy market open to operations and whether, on the contrary, it would be more convenient to wait until certain incidents are resolved. Certainly, the most propitious moment is not marked by external factors, but by one's personal situation. In this post, we detail the factors to know how to make a good decision when buying.
The latest data on the savings rate of Spaniards, corresponding to 2018, is not very encouraging. This indicator, the result of subtracting the consumption of income, fell by almost 5%. The data was the second lowest in the Eurozone, only behind Portugal. The lack of prior saving is one of the aspects that most slow the sale of housing. Although with the new Mortgage Law, the payment of the bulk of the expenses and the IAJD are the responsibility of the bank, the buyer must continue to contribute own funds for 20% of the appraisal value that the entity does not finance.
According to the latest statistics on mortgages of the National Institute of Statistics, the average interest rate at the beginning of the loans granted in March 2019 was 2.34% for mortgages on variable-rate housing and 3.11% for mortgages on variable-rate housing. of fixed type. A year ago, the interest of the variables was 2.42% and of fixed interest, 3.05%. In this sense, it seems that fixed prices are becoming more expensive and variables become cheaper. Not in vain, the Euribor, the reference rate most used in variable mortgages, has pulverized its historical lows by placing below -0.20%.
The Spanish real estate sector has always been attractive, both for the home investor and for the foreigner. One of the reasons that allow this segment to continue in good shape is the purchase for rent. According to the latest data published by the Bank of Spain, regarding the first quarter of the year, investment in housing in Spain offers a gross rental return of 3.9%. If the revaluation of the property is taken into account, then percentages exceeding 10% are reached. Real estate assets are still a safe bet.
After several years of sudden movements, the price of the home for sale seems to have reached some consolidation. This tranquillity is perceived by society. In fact, according to the Real Estate Confidence Index developed by Solvia in April, more than half of Spaniards perceive stability in the housing market and expect prices to continue to rise, albeit more moderately than in the past. That is why 59% of the respondents shows that the current time is propitious to buy.
You could say that employment is the real Achilles heel that slows the acquisition of housing in Spain. There are already more people who buy their first house in the generation of 40 than in the '30s. Many of the young people who work do so by receiving meagre salaries and under precarious conditions, marked by temporary employment. But, in addition, there are those who do not work. The unemployment rate of the population with higher education in Spain stands at 8.9%, twice the European average (4.1%), according to a study conducted by EAE Business School.