Home mortgage appraisals drop by 21% and cash operations grow

2024-01-18 03:35:29

Las mortgage appraisals housing fell by more than 21% in the first nine months of 2023 up to 273,000 operations and the appraised amount fell by 19%according to data from the Spanish Association of Value Analysis (AEV), which includes 22 companies that represent 86% of the operations.

This cut has been accentuated by the usual break associated with summer in the third quarter of the year and by the growth that the purchases of living place cash as a result of the uncertainty regarding the evolution of interest rates, explained the general secretary of AEV, Paloma Arnaiz.

It is to be expected that from now on, Arnaiz added, with somewhat more positive expectations about rates for the coming months, the levels of mortgage appraisal activity will tend to recover to a certain extent.

Despite this fall, also marked by the slowdown in sales due to the increase in financing costs, the average appraisal amount of valued homes increased by 2.8% to 236,000 euros, which shows that during the first three quarters of 2023 homes with a higher average value were appraised than those in previous years. For their part, mortgage appraisals of properties in the project decreased by 38% to 5,100, although their total amount increased by 2.3%. Regarding rehabilitations, appraisals fell 28.4% to 586 but the amount increased almost 80%.

As a whole, not only for housing, appraisals for mortgage purposes fell in the period by 14.5% (18% if we compare only the figure for the third quarter) to 435,600, for a total amount of 7.6% lower. In overall appraisals, AEV members carried out some 753,000 complete appraisals until the third quarter of 2023, 11.7% less than in the same period of 2022.

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Regarding the overall appraisal amount, it decreased by 4.8% up to 273,000 million euros. In addition, 10.5% fewer valuations were carried out for accounting purposes by financial institutions (used to monitor the value of their real estate portfolios) by recording 257,000 transactions for a total appraisal amount of 2.5 % lower.

58% of the valuations correspond to the mortgage market, 34% are for the accounting field of financial entities and around 8% for valuations for other purposes (advice, experts, etc.).