The real estate sector is going through a good moment despite the economic crisis derived from the coronavirus pandemic. Proof of this is that purchase and sale operations shot up 24% in the interannual rate in February, to 53,623, the highest figure since April 2008. As for , they continue their upward trend. According to Tinsa, the value of the brick increased by 6.8% year-on-year in March. Meanwhile, the Bank of Spain warns of the possibility of one that could occur from a “transmission of real estate imbalances” from other countries in the euro zone.
In this context, many people wonder if it is a good time to sell their house. The experts from the financial and real estate comparator HelpMyCash.com estimate that the upward trend in house prices will moderate in the coming months, as a result of the , the expected rise in interest rates and the uncertainty generated by the Russian invasion in Ukraine.
The latest report from the Tinsa appraiser, for example, reflects a monthly rise in housing prices in March of 0.3%. Figure lower than that of February (0.4%) and that of January (0.7%).
As for the mortgage market, after six consecutive years in negative numbers, the Euribor is already in positive territory. A direct consequence of the continuous declarations of those responsible for the (ECB) about the imminent rise in interest rates in the euro area to control inflation.
This increase in the cost of housing, added to the general rise in consumer prices which, logically, reduces household savings, could have a direct impact on the demand for housing, which until now was high in relation to supply.
However, “in some local markets with high profitability, investment demand is increasing,” they explain from the financial and real estate comparator. And it is that, in the face of uncertainty, many investors begin to withdraw money from the stock market to invest in housing, which is positioned as a refuge value.
In this context, the average time to sale was reduced in some cases. “Those whose price is adapted to market conditions take one or two months to sell; while those that exceed it, may take four months or more, depending on the location of the property and its intrinsic characteristics,” the experts detail.
The needs of the seller
So, the big question: is it a good time to sell a house or is it better to wait? “With prices still high, active demand and the Euribor just breaking positive ground, this may be a good time to sell,” they explain from HelpMyCash.
Mainly if the owner’s motivation is to sell his house to buy another one or to solve a co-ownership situation that comes from a divorce or an inheritance. “However, the answer always depends on the particular needs of the seller and the characteristics of the local market,” the experts assert.
If a homeowner wants to sell their home to invest in stocks or another financial product, they advise carefully evaluating the risks before making the decision. In any case, it is always convenient to consult with a real estate expert.
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