If you have come this far, it will be because, surely, the idea of buying a new house in this new year is going through your head and you want information about the real estate sector in general and mortgage loans in particular. You're in luck, from Pro Realty we tell you all the information we know so far about the mortgage forecast for 2022 .
The real estate sector in 2022
First of all, you should know that there are a lot of hopes for this year as far as the real estate sector is concerned. Taking into account the figures for the sale of homes with which 2021 has closed, with more than 500,000 operations and price stability, all experts point to the fact that 2022 will once again be a great year for Real Estate .
Some voices even point to a real estate bubble like the one experienced in 2008. However, experts in the housing sector rule out that the situation will be the same as it was then, as there are many differentiating factors.
What all real estate analysts do seem to agree on is that house prices will rise slightly in 2022 . In this way, if one of your New Year's resolutions is to buy a new house, you may have to invest between 4% and 10% more than you planned.
What is the reason for the price increase? The reasons for this economic increase will be, mainly, three: the lack of labor, the increase in the cost of materials and raw materials and, finally, that demand ends up exceeding supply.
The sale of homes in this new year
Is it likely that the time will come when demand will eventually outstrip supply? The answer is clear: yes.
The Spanish population shows a clear preference for buying over renting , especially in those large cities where rents have traditionally been higher than the average in Spain.
This has been reinforced in recent years because, with the restrictions that COVID-19 has brought us, many people have decided to invest the money saved in the purchase of a new home . An action that has been reinforced by the facilities provided by banks for granting mortgage loans .
As far as 2022 is concerned, we cannot venture to assure that this situation will continue like this. Everything seems to indicate that this could be the case, but we must wait to see how the new Housing Law promoted by the Government of Spain affects.
Evolution and forecast of mortgages in 2022
Once this brief analysis of the housing market in Spain for this year has been made, it is time to delve into the main topic of this article: the mortgage forecast for 2022.
As we pointed out earlier, in the last year the banks began to provide more facilities when it comes to granting mortgages. However, it does not seem that mortgage concessions for 100% of the value of the home will be re-experienced. According to data from the Bank of Spain, mortgages that are granted above 80% account for only 8.8% of the total.
Yes, it is true that, in 2021, there were several entities that announced the possibility of up to 95% financing or lower interest rates for those under 35 years of age , thus favoring the access of the youngest to the purchase of a home .
Therefore, the most convenient thing if you are going to request a mortgage loan is that you have savings that, at least, represent 20% of what your new home will cost you. This way you will avoid possible problems with the bank when approving the concession.
Fixed-rate mortgages will continue to be the most demanded
Compared to what happened a few years ago, when most people who signed a mortgage did so at a variable rate, fixed-rate mortgages are, right now, the most in demand . So much so that they account for almost 70% of the new mortgage signatures that are made in our country.
Among the reasons that have led home buyers to prefer this option, we find, mainly, two. On the one hand, the constant struggle of financial institutions to obtain new clients has placed mortgage prices at historical lows .
In this regard, experts do not expect prices for new mortgages to continue to fall, but they do expect them to remain stable, at least during the first part of the year. The banking sector speaks along the same lines, pointing out that interest rates are already very low (below 3%) and that it is very difficult to improve these conditions in the short term.
On the other hand, the fact of contracting a fixed-rate mortgage guarantees always paying the same installment , without having to be aware of the rises and falls of the Euribor.
However, these data are nothing more than a reflection of what is expected taking into account the current economic situation in our country. Depending on how it evolves in the coming months, we will see if the predictions of the expert voices really come true or not.
How does the Euribor influence the variable rate mortgage?
What happens if I take out a variable rate mortgage? This can be very tempting at the moment when the Euribor is at very low rates.
Variable mortgages are those in which the mortgagee must pay a fixed interest plus a reference index, this index is usually the value of the Euribor .
However, you must be clear that your monthly payment in a variable mortgage will rise or fall depending on how the Euribor evolves . In other words, the entity will review the value of the Euribor periodically (in Spain it is usually once a year, although it can also be every three or six months) and if it has risen, your fees will also increase, and vice versa.
The rise of green mortgages
Another type of mortgage concessions that must be closely followed are those known as green mortgages . These are loans that are granted for the purchase of homes that have an 'A' or 'B' rating in energy efficiency or for the purpose of homeowners being able to make changes to their home to improve at least one 30% said energy efficiency .
Choose the mortgage that suits you best with the help of our Real Estate Personal Shopper
If you are looking for a new home, at Pro Realty we have an extensive list of available properties.
In addition, we remind you that you can hire our Real Estate Personal Shopper service . In this way, you will not only have a figure to help you during the long process of searching for your ideal home, but it will also be a figure to turn to if you need financing for the purchase. This person will advise you what type of mortgage will be most beneficial for you taking into account your economic situation and the economic situation of the country.
What are you waiting for? Get in touch with us and we will help you in the search for your new home.