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Shortages in Supply, Inflation and Rising Interest Rates. Is It a Good Time to Buy a House?

Shortages in Supply Inflation and Rising Interest Rates. Is It a Good Time to Buy a House - Shortages in Supply, Inflation and Rising Interest Rates. Is It a Good Time to Buy a House?

The real estate market in Spain has experienced an increase in sales during the first half of the year, with a year-on-year growth rate of 9.6%, according to the National Institute of Statistics (INE). However, the negative evolution of the economy makes us wonder if it is a convenient time to buy a house or if it is better to wait for the situation to calm down.

The foreseeable cooling of the real estate market

Property sales have not stopped increasing in recent months due to some key factors: the end of the pandemic, a rise in savings and an improvement in employment numbers.

Nevertheless, the situation is different now: a high inflation rate has reduced purchasing power and saving capacity. Besides, the rise in interest rates and the risk of entering a recession may mark the evolution of the property market.

And what's more, there is a shortage of housing stock, and for years the real estate market has been unable to meet demand. Additionally, the increase in construction costs will inevitably affect the pricing of new developments.

These factors make it harder to buy a property. That's why we wonder whether it is good timing to buy a house or to postpone the decision until the situation becomes more stable.

How to know if it's good timing to buy a house

The general context can influence the decision to buy a home or wait. In any case, we recommend considering the following elements:

Value of mortgages: higher mortgage rates can condition the purchase decision. In any case, we should analyze the possibilities of indebtedness and the saving capacity. There is always the possibility of slightly lowering expectations in terms of housing to face mortgage loans.

Job stability: On the one hand, it is fundamental to get a mortgage. Also, it conditions the debt capacity.

Personal goals: in this sense, stability is another essential factor. Before buying a home, you should consider whether it meets all your needs, present and future. In this sense, don't forget that any real estate transaction carries other expenses apart from the mortgage. For that reason, the best would be to keep the home long enough to increase its value. That will allow recovering the investment.

Find your ideal home at Spainhouses.net

Therefore, when determining whether it's the right time to buy a house, it is necessary to consider the general economic context and personal factors. We must also assess the real estate market and a foreseeable cooling and even price adjustment.

If you think this is your moment, Spainhouses.net makes it easy with a broad property offer. Start searching now for the house you need!

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