22 Jan Why house prices will rise in 2018
We are tired of hearing and reading news saying that the price of housing rose during 2017, a trend that already started in 2016. Well, everything predicts new increases in 2018.
Like any statistical data, it is necessary to analyze them in detail and understand the population samples and the average deviations that can occur in some areas, but even only analyzing the global data, the conclusions are quite clear.
In Spain, in 2017 the increase in home sales was 16.9%, the rise in the sale price of new homes 5%, the highest since 2007. And if we analyze the real estate market in Madrid, the price increase has reached 17% when you take into account both new and second-hand housing.
Something similar has happened in the rental market, with an 18.4% increase in prices and a profitability increase of 7.3% on national average in the last quarter.
With this scenario, the estimates for 2018 are:
- Growth in the number of sales transactions,
- Increase in the price of purchase and sale of real estate
- Increase in the rental price
Why will the uptrend in the market continue:
- There is greater confidence in the stability of the economy
- Greater employment certainty
- Increase in rental returns
- Decrease in the stock of houses
- Spain is a receptive country of new residents and Madrid especially.
- Ease of access to financing.
If we focus these conclusions on Madrid, the reflections will be even more true. They will not be the same in the whole region, but they will be true for almost all neighbourhoods of the capital. We will undoubtedly have higher prices, less interesting offer, shorter sales deadlines, scarce rentals in prime areas and at much higher prices.
What can be the solution if we are considering buying, selling or renting a home? Analyze the market well, do not delay making decisions and always seek advice from a professional.