What do we expect in the Real Estate Market for this 2019?
Once this year is over it is time to take stock of what has happened in the sector in these 365 days that are now ending. But it is also time to address the forecasts and tasks that the market should undertake in the next 12 months.
This year, as predicted by different agents of the sector, has been that of consolidation. By 2019 the majority of promoters and experts consulted predict that it will be the maturity of the market, but also that of moderation and price stabilization.
The start of the recovery of the real estate sector was somewhat different and, on this occasion, that recovery has been supported by the good moment of the economy, when the usual was the reverse: that the construction sector led to the first advances in the economy after a contraction stage .
The demand will rise around 10% with respect to the previous year, which will mean almost the sale of 590,000 homes
One of the main indicators to measure the health of the real estate sector is the price of houses. By 2019, according to the experts consulted, this parameter will remain upward but in a more moderate way.
Regarding second-hand flats, according to the Real Estate Index of Fotocasa, 2018 will close with an average annual price increase of 7.8%, the highest level since 2006, when it closed with an increase of 7.7%.
Although these percentage increases are reminiscent of those of the boom years, the average price of second-hand housing is still 36.7% below the highs of those years and is at 2013 levels according to the area. This, together with the control of financing and the stabilization towards which the market tends to move away the possibility of a real estate bubble “.
All the forecasts made seem to indicate that the increases will move between 4% and 6%.
Purchase and Sale
In 2018 good figures have also been obtained in terms of sales transactions, although most of them have been made on used homes.
According to the latest data of the Real Estate Registry Statistics, corresponding to the third quarter, during this period 133,295 purchases were carried out. In interannual computation 508,402 operations were registered, 420.699 of them on second hand houses. Thus, in the absence of knowing the end of the year, everything points to that will touch the 600,000 real estate transactions.
But what will happen next year? According to Samuel Población, national director of Residential and Land CBRE, the forecast is that “the demand for housing consolidate its growth in 2019, reaching approximately between 625,000 and 645,000 units sold.”
At this point, Guillermo Llibre, CEO of Housell, argues that one of the main reasons why the sale of homes has experienced an unstoppable escalation in 2018, “has to do with the rise in the price of rentals. This, the demand has also changed: buyers of all ages have gone on to see the option to rent as an unnecessary expense, and bet on the purchase as the best possible long-term investment.
Source: Newspaper “El Mundo”