In the first months of 2024, the sector has evolved favorably, from Arena Projects we expected that housing demand would go from strength to strength, gaining traction as the reduction in mortgage interest rates was confirmed and the growth of the economy was reactivated. Evidence from the first few months of the year shows slightly more dynamic demand than we initially expected. The purchase of a house to live in does not have to be a decision that is motivated by economic and circumstantial factors of the moment, it is a decision that should be motivated by personal factors, such as job stability, saving capacity, or vital necessity. That is why, from Arena Projects, we recommend that these decisions be taken apart from the punctual evaluation of the price of the property.
Is it now? It is undoubtedly a good time to buy, there is a very active demand and a shortage of supply. This has been the usual trend in recent times and will not change, therefore, prices are likely to continue to increase in the coming months. Moreover, if the demand for purchase is high, the demand for leasing is very high, as a result, among other aspects, of the recent legislative changes, so that the return on investment is in relevant percentages. Prices are not growing as strongly as they have in recent years. Therefore, if we are left watching or waiting for a price drop, we believe it is not going to happen, there is nothing to indicate that next year is going to be better in terms of prices”.
Another of the great uncertainties to which future homebuyers are being exposed is the possible lowering of interest rates before the summer, and the question of whether it is better to buy now or later. For this reason, we believe that new construction and general housing will continue to behave independently of the evolution of interest rates. In any case, it does seem reasonable to think that with cheaper financing costs, housing prices could rise faster. From Arena Projects we advise those who are looking, assuring that “the best time to buy was yesterday and the second best is today”. In the case of new construction, Arena Projects explains that it is always more profitable to buy earlier rather than later, as prices tend to be higher at the end of construction. Therefore, it is always better to buy early rather than wait. It is important to consider that any reduction in rates is likely to be gradual. Even with a downward trend, rates are expected to remain above 2.5% for a considerable time.
Therefore, if a buyer finds a property that meets their requirements and is within their budget, it is wise to consider making the purchase now rather than waiting for market conditions to improve.
