The rise in housing: why prices are reluctant to fall after the pandemic

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The housing market has long since passed the impact of the

.

Sales and mortgages register record increases every month and prices were added to these figures yesterday, which in the third quarter experienced a

, the highest advance in the last two years.

The data, extracted from the

(IPV) of the National Institute of Statistics (INE), not only reflects the dynamism that

in Spain, but also a change in the upward trend as a result of this effervescent activity. "It is a significant rise that is in line with the great demand to buy a home that has been generated after the impact of Covid-19 in Spain and that we see how it is being channeled since the beginning of the year at a very good pace with closed purchases," he says

, Director of Studies and Spokesperson for the real estate portal

.

Their forecasts suggest that the trend will continue as long as the market's tone remains that of recent months.

"As long as this intensity in the market continues, it is possible that prices will continue to show increases, although

" adds the expert.

In other words, house prices have no signs of going down in the coming months and there are several factors that explain why this is so.

On the one hand, the

the need and desire to look for houses that are more spacious, bright and away from urban centers that suit their needs.

"There has been a change in the housing preferences of individuals that now makes us value housing more than ever," adds Matos.

On the other hand, the

, especially in a context of inflation in which price rises make the majority of financial assets less attractive -and performance-.

The

, again, shows off its

character

and also leaves returns that depending on the source

The last of the factors that sustains the increase in prices are the attractive

banks when granting mortgage loans.

The enormous liquidity injected by central banks to deal with the pandemic and interest rates at historic lows favor entities to keep the mortgage tap active.

Possible bubble?

Despite these figures, in the sector they dispel doubts about a possible real estate bubble similar to that experienced in the first decade of the century. "The IPV data show a rate of increase that is below the CPI. Despite the large increases in the number of purchases and mortgages, the moderation in prices is confirmation that,

or heading towards a new bubble, the market is overcoming the pandemic and reaching the levels it would have reached had it not suffered from the health crisis ", highlights

, spokesman for the Idealista real estate portal.

Prices for the sale of homes have already accumulated a series of 30 quarters of year-on-year increases.

Restrictions and uncertainty during the worst months of the pandemic smoothed out increases to 0.9% in the first quarter of 2021, the lowest rate in seven years, but that was also a turning point.

Returning to the third quarter of this year, the annual rate of new housing fell almost two points, to 4.1%, while the variation of second hand reached 4.3%, almost one and a half points above the the one registered the previous quarter.

At a quarterly level, the variation in the general HPI between July and September is 2.1%, while the prices of new housing rise 2.8% compared to 1.9% for second-hand housing hand.

By

, all the autonomous regions presented positive interannual rates that were higher than those of the previous quarter, except for the Basque Country, which cut it by 1.2 points, to 1.4% .The largest increases in the annual rate were recorded in La Rioja , Andalusia and Galicia, with increases of 2.8, 2.4 and 2.3 points, respectively.

According to the criteria of The Trust Project

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