Housing rises 8.7% in June due to the pull of the periphery of the cities

The price of housing closed June with a rise of 8.

Thomas Osborne
Thomas Osborne
18 July 2022 Monday 21:50
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Housing rises 8.7% in June due to the pull of the periphery of the cities

The price of housing closed June with a rise of 8.7% compared to the previous year, driven by the increases in housing prices in metropolitan areas and small municipalities, in which prices have risen a 0.9% and 1.1% respectively.

These areas, which are still experiencing the effect of the search for large spaces and green areas that the pandemic brought with it, are the ones that have accumulated the highest price increases in the last year: 9.2% and 9.1% compared to the previous year. last year.

Prices also rose, but less in the centers of capitals and large cities, 8.4% year-on-year. And at even slower rates in second-home areas, with increases of 4.5% on the islands and 6.9% on the Mediterranean coast.

Prices are being pushed up by the reduction in housing supply. According to data from the appraiser, the supply of housing on real estate portals has dropped by 8.81%, with 689,000 homes advertised on the main portals. And in addition, new construction is also slowing down, with only 6,600 homes approved by surveyors' associations in April, 28% less than a year ago.

The director of the Tinsa Studies Service, Cristina Arias, pointed out that despite this, signs of a certain slowdown are already being observed, which is reflected in the fact that mortgage granting has only grown by 4.7%. "If it consolidates, this slowdown could be caused, in part, by a tightening of the criteria for granting loans in the face of the announced change in the ECB's monetary policy," explains Arias, since the reference rate for mortgages, the Euribor , closed June still at very moderate levels.

For this reason, in his opinion, “it is to be expected that the increase in interest rates will result in a gradual moderation of demand that slows down the growth rates of prices”.

According to data from Tinsa, with the rebound in June the price of housing has risen 32% compared to the lows recorded in 2015. However, in most localities prices are far from the levels they reached during the maximum of the housing bubble, so that the appraiser's index is 21.3% below the maximum it reached in 2007.

The Fotocasa portal yesterday also ratified the moment of uncertainty that the real estate market is experiencing. According to its "Radiography of the housing market", the participation in the buying and selling market of those over 45 years of age, who are the largest buyers of homes as a second home or as an investment, has decreased, while that of those under that age has risen . The biggest falls in real estate activity, according to the portal, have occurred in Madrid (the percentage of those who have bought drops by 40% and the percentage of those who try to sell falls by half) and in Catalonia. A decrease that the portal attributes to the high prices of housing in its metropolitan areas.