Opinion And Analysis

Spain’s top property portals recognize “healthy state” of real estate market

By Silvia Castro Betancourt 0 Comments NEWS, Opinion And Analysis
This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.
Spain's top real estate portals recently evaluated June property sales data which was published by the National Institute of Statistics (INE) which indicated that the market is in "good health".
Idealista, Pisos.com, and Fotocasa all referred to the statistics data showing that home sales moderated their growth to 1.8% in June.
From Idealista, the head of research, Fernando Encinar, said that, although the year-on-year variation is lower than in previous months, statistics show that "the normalization of the sector is in good health."
"In a market that works correctly, the rates can suffer ups and downs, are part of their natural behavior and rule out the possibility of a new bubble," according to Encinar.
Another symptom that suggests the "strength" of the housing market pointed out by Idealista is the "smooth but steady increase in new construction operations, which rise more significantly than the market as a whole".
From Fotocasa, the director of research, Beatriz Toribio, said that the market continues to record "good figures" but "there is a moderation in the activity that is marked by the regions that until now had concentrated the greatest dynamism of the market, such as Madrid, Catalonia, and the islands."
According to Fotocasa, the housing market "continues to show clear signs of recovery, but its trend is towards normalization and it is still not close to the 2007 records when in a month over 80,000 trading operations could be closed."
"Although the economic and financial context goes hand-in-hand, the demand of the consumer has not "woken up" just yet, the bulk of the population continues to seriously struggle economically and cannot purchase of a home due to the lack of savings and low purchasing power", indicated Toribio.
For his part, Pisos.com's head of research, Ferran Font, stressed that the "reduced rebound" is "within the reasonable margins of the housing market's healthy standing, but we must be very careful of the evolution of operations in the coming months to be able to speak with confidence of a solid trend."
Font pointed out that 11 regions are above the 100 homes purchased monthly for every 100,000 inhabitants and added that "it would be very good for the sector if transactions maintain this trajectory in order to narrow the gap between supply and demand”.
This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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