Guillermo Book He is the founder and CEO of Housella proptech focused on the intermediation of the sale of homes. Together with the professional, Brainsre.news analyzes the state of the residential sector in Spain.
Step effect with record figures, rate hike, triggered inflation, possible recession… After a historic first half of the year in the real estate sector, has the ceiling been reached? “Evidently, the macroeconomic factors point to a complicated situation in the short and medium term that could slow down activity in the real estate sector,” explains Guillermo Llibre. In his opinion, “nothing serious at the moment, but it is true that the real estate sector takes a few months longer than other sectors to slow down.”
In this sense, phenomena such as inflation or rising energy prices have a direct impact on individual consumers. The expert explains that the coming scenario “is going to make buyers and sellers more cautious, but it is also true that the shadow of the coming months being harder makes both buyers and sellers want to speed up the sale«.
Although transactions may moderate more, prices do not seem so willing to slow down in the short term. In what position is the small consumer? free considers a temporary fact “that transactions are moderating, but prices are not”. The manager believes that the amount will end up going down a bit, “basically because there will be less demand for interest rates, but probably not in the short term.”
Although interest rates seem high, he explains, “they are still really low, for example, compared to 20 years ago and that is creating a certain urgency and rush in buyers to buy a home.” He recalls, at this point, that “housing in Spain is, historically, the asset where citizens invest their savings also in order to ensure that their money does not lose value”, a situation that is even more pronounced in times of high inflation.
In two decades, not only has the economic context changed, but also the digital one has turned the real estate sector upside down. Since its arrival on the market, the proptech They have been characterized by their transparency and personalization, essential aspects when it comes to revolutionizing a traditionally opaque sector.
“Thanks to digitization, the real estate market has approached individuals, who can play to be part of it and obtain real, first-hand information about the sale of their homes”, explains Llibre.
In the midst of uncertainty, it becomes even more necessary for clients to have tools and information at hand to help them make the best decisions and, at the same time, advise them and offer them personalized services that meet their needs. “It is the way to prevent widespread pessimism from setting in and significantly affecting the real estate market,” concludes the manager.
How will the current crisis affect the real estate sector?
Book considers that the market will have to adjust its services to the new needs of consumers who will be more cautious when buying and selling and, furthermore, will have more uncertainty. Information, experience and flexibility -basic pillars in the branch proptech– will be three very important values to be able to offer an effective real estate service that fits the current context.
Your company has also had to reorganize its dynamics when interacting with customers. Recently, he has launched Housell Flex Freemium, the free version of the Housell Flex service, launched in the middle of last year, which “represented a revolution as it is a subscription service, customizable and without commissions” that empowers the client when deciding how he wants to sell his house. “In the first half of 2022, half of Housell customers have chosen to contract Housell Flex,” says Llibre.
Freemium is mainly focused on those who want to sell on their own or sellers who are still not so clear about what they want to sell and who want to test the real estate market, encouraging individuals to be able to “walk safely” before entering the sector in a moment so complex. The free real estate service has already helped 5,000 Housell clients to sell their house and allows clients to organize their visits, receive offers and see statistics without spending a single euro, although there is also the possibility of contracting an extra service if they so decide. .
Forecasts for the sector in the short-medium term?
According to Llibre, the mortgage sector is also going through a period of change, the situation can be verified these weeks due to the rise in the Euribor: «The number of mortgages will slow down its growth, but we are not going to see a slowdown but rather a rationalization of prices». The expert explains that, despite the rise in rates, they remain low, “and that is creating a certain urgency for buyers in order to buy a home with the best financing conditions before interest rates rise further, something that It looks like it will continue to happen.”
Thus, in the medium term, and depending on the rise in the Euribor, mortgage firms may be winding down. Internally, Housell has verified that the sales are taking a little longer as buyers are doing more research and negotiating with financial institutions to achieve the “best possible mortgage given the situation of rising interest rates and the supply that there is right now”.