The prices of the living place in spain they keep going up. But they do so at a more moderate pace than in recent months because the inflation and the increase of interest rates are cooling the mercadowhich augurs a new housing crisis. The experts of Oxford Economics They conclude that there will be a Change of trend and that, to compensate a euribor of the mortgages through the roof, home values will drop. Some say that should not drag the sector into a recession. However, some countries in Europe already suffer from a significant price correction of the estate.
It is the case of Swedenthe patient zero new real estate collapse. The value of housing has decreased by 12% since the beginning of the year, according to the HOX index prepared by Valueguard in the Nordic country. Only in October, the decrease was 3%. In addition, local banks and financial institutions suggest that prices will continue to freefall until end of 2023until readjusted by 20%.
Variable-rate mortgages drag the market
It is true that prices had peaked and that had led families to borrow beyond their means. That the Euribor has woken up after years in the negative and that it now stands at 2.233% has not helped either, since variable-rate mortgages have become more expensive.
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This behavior has suffered especially Sweden, since 44% of its residential market is connected to this type of loans, according to the European Mortgage Federation. Other countries will not get rid of the bump either, predict the Oxford economists, since they also share this behavior. It is the case of USA, Australia o New Zealand y United Kingdom.
Global real estate collapse
There will be a real estate collapse in Spain for a sudden drop in the price of the house? The Oxford economists do not mention us, but they warn of the danger that great powers suffer from this situation: they can cause a domino effect that will devastate the housing sector globally.