Considering the international political and economic situation, we must be very cautious with all the forecasts for the price of housing in 2023. However, despite the general rise in the cost of living and interest rates, record figures were recorded in the purchase and sale of real estate during 2022.
House price in 2023, how is it expected to evolve?
Last year ended with an increase in house prices of around 5%, but there are indications that those prices could have peaked or will do so in the coming months. In any case, it's more likely a stagnation or a slight decline rather than significant adjustments. Anyway, in case of adjustments, there won't be generalized. Actually, in some areas, the upward trend would continue.
Those changes in the price of housing in 2023 will depend on different factors. On the one hand, we expect property demand to continue to exceed supply, which would help maintain prices. On the other hand, we'll have to wait for the evolution of inflation, which seems to have begun the path of containment, providing a small incentive to revitalize the real estate sector.
Besides, other factors could lead to more significant adjustments. For example, the time families need to recover their savings levels, the evolution of the Euribor and interest rates. If there are no changes in this sense, the demand could suffer a containment important enough to drag down the home prices with it.
Moderation in the number of purchase and sale operations
Although there is uncertainty about the evolution of prices, there seems to be no doubt that the number of purchase and sale operations will decrease. In effect, in the last months of 2022, the decrease in interannual rates was a fact, according to data from the General Council of Notaries.
That prediction would affect sellers and buyers unequally. For owners, it would imply more time for sale and perhaps the need for price moderation to prevent the home from becoming stuck in the market. For this reason, now it's convenient to sell because the forecasts that augur adjustments and containment of demand have not yet materialized.
On the opposite side, we have the buyers, for whom any moderation in house prices is positive. It is an incentive to take the definitive step, much more so if inflation keeps decreasing and we recover some of our saving capacity.
In any case, we shall assume that the forecasts predict different behaviours in the real estate market. In large cities, the real estate market will maintain an upward trend. They will continue being a pole of attraction for investment.
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