2023-10-31 22:56:08
The gradual rise of the Euribor in the last year has caused a general withdrawal in the search for bank financing when buying a home. In this sense, Almería is one of the Spanish provinces where the signing of mortgages to buy homes has decreased the most, in relative terms. Almost half of the transactions – 46% of the total for the period elapsed in 2023 – have been carried out without bank financing, according to the real estate appraisal company UVE Valoraciones.
The total number of sales made through ‘tocateja’ in the province has been 7,073 during 2023, the sixth Spanish province, only surpassed by Alicante, Málaga, Valencia, Barcelona and Murcia.
The number of homes purchased without financing has grown in line with the rise in mortgage rates. Financing alternatives must be sought in inter-family loans, in the sale of the old home to pay for the new one and in the intuition that there may be a high share of black money circulating in the market.
The rise in interest rates has reduced the purchasing capacity of buyers who purchase a home for their own use and who usually finance themselves to do so, but the rise in inflation has put upward pressure on home prices and, above all, the rents. Thus, the increase in rents has become an incentive for property owners, especially if they do not need financing to buy.
The UVE Valuations report reflects that the real estate market is still suffering the effects of confinement due to the Covid-19 pandemic. After the stoppage in activity caused by confinement, the ECB’s money injections – necessary to relaunch the economy – have caused a considerable increase in inflation, which has led the ECB to raise interest rates to try to stop it.
The rise in interest rates has reduced the purchasing capacity of buyers who purchase a home for their own use and who usually finance themselves to do so, but the rise in inflation has put upward pressure on home prices and, above all, the rents.
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