The ‘sprint’ in the purchase of houses has gained fame among buyers during the first four months of this year, and this is because many have seen it as a viable alternative to escape the rise in mortgages.
Added to the rise in mortgages, which was felt in May and which will intensify in the coming months, is another problem: the lack of homes for sale. It is estimated that the current ‘stock’ is barely 2.5% of the total park and many of them in areas that are not attractive for demand.
Projects held back by rising costs
In the short term, the problem does not seem to be solved as a result of rising construction costs, which is holding back many projects. All in all, it is estimated that in the coming months home sales will fluctuate between 1,800 and 2,000 per month, at levels similar to April, when 1,959 operations were closed.
The previous months, due to the ‘sprint’ of mortgage flight, the figures were higher: 2,032 in January, 2,125 in February and 2,332 in March. In total, 8,448 homes were sold in the Canary Islands in the four-month period, 13% more than in 2019, when there were 7,476.
In the Canary Islands, foreign demand must be added to residential demand, which on average accounts for 30% of operations. The foreigners returned with force in 2021, after the covid pandemic, and now they maintain operations. Regarding the rate hike, Bello points out that it is still possible to find mortgages on the market at a good price, at 1.75% or 1.80% for thirty years.
The rates so low to date “were not real”
Bello’s opinion indicates that the real estate market in the islands is entering a stage of cooling and stabilization, which is shared by different experts in the sector. From the real estate portal, the Idealista, its spokesman, Francisco Iñareta, explains that in the coming months there could even be a small drop in operations due to the rise in financing, economic uncertainty, inflation and the low ‘stock’ of houses .