An analysis of housing supply in the final stages of COVID-19
As the COVID-19 pandemic approaches its anticipated final stages, the property market has not followed the predictions made in many forums. After months of restrictions, spring and summer have been particularly active for property sales, making suitable homes difficult to find in some areas.
However, this lack of stock cannot be generalized in all cities, or in all provinces. Those properties with 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 Idealista, 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 that the main organisms made a year ago, in which it was said that the price of the house was to descend in the year 2021 due to the accumulation of unsold property; which shows that the reality and the market is often capricious and unpredictable.
In Dream Sun Spain, we set out some reasons why buying a home has become difficult in certain areas:
- Post-pandemic demand: after months of almost no property activity, the lifting of restrictions and the arrival of summer encouraged buyers to make up for lost time and buy their dream home.
- Little new supply during the pandemic: restrictions affected both purchases and the listing of new properties. Completion of many ongoing projects was also delayed, slowing the arrival of new homes on the market.
- Expecting the evolution of prices: Due to the multitude of negative news, the owners who do not have an urgent need to sell are waiting and very cautious, as they do not want to sell at prices below the previous years.
A return to normality and safe travel between cities and countries, alongside gradually rising prices, will stimulate the property market and make it more attractive to owners considering a sale.
