The price of housing no longer grows as before. The bulky double-digit increments have long since been abandoned. In addition to this contraction, other fundamental market indicators, such as mortgages and sales, are registering a different evolution, moving from the negative to the positive terrain or vice versa from one month to another. The confluence of internal and external factors is making a dent in the sector.
The entry into force of the new Mortgage Law surprised the market with the changing pace. Although it had been talking about its implementation for a long time, this did not prevent banks and notaries from expanding operations. The falls in the granting of mortgages (-29.9%) and in the housing sales (-21.1%) during the month of August have their roots in this regulatory change.
For several years, the residential market has been sustained, in large part, by replacement housing and investment housing. Both buyer profiles are not infinite, and after a while, they have cooled. Today, the relay is taking place at the hands of the first home, a demand that does not have the economic ease of the investor or the repositor, so the pace is slower.
Forecasts on a slowdown in the Spanish economy are increasingly taking shape. Criticisms arriving from Europe anticipate a new breakdown if the necessary readjustments are not made. This uncertainty does not favour the achievement of a stable real estate sector, but it sows distrust and causes its cooling.
Given the echoes of what could be a new crisis, the citizen becomes prudent and prefers to save to spend. An unflattering scenario will dissuade you when making a purchase as important as that of a house, it will not be that your work fails and you return to the default-execution-auction-eviction wheel. If you fear for employment, the dream of owning is inevitably postponed.
The political blockade to which the country has been subjected goes back to the moment in which Mario Rajoy did not overcome the motion of censure of the Socialists. The lack of agreement regarding the budgets and the paralysis of the Congress of Deputies mean that the much-desired State pact on housing does not end up being defined.