There is never an ideal moment to buy or sell because, in reality, the perfect time arises when we find the house we’ve been looking for or when we need to sell our property for a particular reason and a suitable buyer emerges.
Currently, the market is fluctuating, and in 2024, this trend is expected to continue. In this article, we will examine some possible projections for the real estate market in 2024.
- Transactions
In 2024, transactions are expected to fall by approximately 30% to 40% as mortgage applications have decreased. This is because banks have raised their interest rates, and Euribor continues to rise. Consequently, buying a property is no longer attractive to buyers needing a mortgage. On the other hand, the recent adjustment in the Euribor may excite buyers, as it seems that interest rates could decrease. However, with inflation continuing to impact the European Union, the future remains uncertain.
Considering the declining number of transactions and the expectation that they will continue to fall, we know that inventory is increasing in all cities, and premium or high-demand areas will not see significant adjustments.
- Demand
Regarding demand, it is expected to be sustained in areas where foreign clientele prevails. This is because this type of clientele typically does not require a mortgage. The areas referred to are the Costa del Sol, Costa Brava, Costa Blanca, for example, or cities with a large foreign clientele (20% - 30% foreign buyers).
- Expectations
As mentioned, the data shows a decrease in the number of transactions and the number of granted mortgages. On the other hand, inventory has increased, but demand has decreased.
Now, what can be expected for 2024? We are currently facing a scenario of uncertainty, as it seemed we were heading towards a situation with increased supply and decreased demand, although the recent decision of the European bank to change interest rates may alter this perception.
For this reason, if you find the property you’ve been searching for, what difference does a 5% or 10% increase in property value make? Similarly, if you need to sell, why wait to get 5% or 10% more if you have the need to sell right now?
It will never be the perfect time, as the market and demand are always fluctuating. In conclusion, 2024 presents itself as a year full of challenges but also great opportunities.
If you need advice on buying or selling a property, contact me and I will help with the right choice!