Analysis of the housing stock situation in the final stretch of Covid19
In the expected final stretch of the Covid19 pandemic, the response of the real estate market has not followed what was announced in many forums. After a few hard months of restrictions, spring and summer have been especially active in the sale of real estate, with some areas having problems finding the right home.
However, this lack of stock cannot be generalized in all cities, nor to all provinces. Those properties with a good location, good quality and at a reasonable price, have been the first to captivate the desire of the so-called “post-pandemic buyer".
According to the real estate portal Idealistic, the housing stock has been reduced by 4% in average terms in the main Spanish cities, reaching 11% in cities such as Madrid and Valencia. These data contrast with the forecasts made a year ago by the main organizations, in which it was said that the price of housing would fall in 2021 due to the accumulation of unsold properties; which shows that reality and the market is often capricious and unpredictable.
En Dream Sun Spain, we expose some of the reasons that we consider, have caused a difficulty when acquiring homes in certain areas:
- Post-pandemic demand: After several months of almost zero real estate activity, with the lifting of restrictions and the arrival of summer, buyers had to make up for lost time to acquire the home of their dreams.
- No offer has been created during the pandemic: Just as there was no possibility of acquiring a home, there was also no possibility of introducing new properties for sale. Similarly, due to this situation, the completion of many ongoing projects has been delayed, slowing down the market launch of new properties.
- Waiting for price developments: Due to the multitude of negative news, owners who do not have an urgent need to sell are waiting and very cautious, as they do not want to sell at prices lower than previous years.
The return to normality and the possibility of safely moving between cities or countries, and that, together with a gently rising price trend, will boost the real estate market, making it more attractive for owners who are thinking of selling their properties.
