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According to the Experts, What Will the Decrease in House Prices Look Like?

The experts forecast that second-hand house prices will decrease by up to 6%, spurred by an increase in unemployment and in the supply of inherited properties.

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Covid is having all kinds of consequences, and the real estate market is suffering many of them. In terms of the second-hand house sector, which has accounted for 80% of transactions in Spain since the previous crisis, since it is basically a market for repositioning, the effects seem inexorable.

The experts consulted by predict a drop in the prices of second-hand homes that will be seen between the last quarter of this year and the beginning of 2021, “when people know whether their ERTEs have become EREs and the economic situation has become clearer. That will affect the pressure on sales in a negative or positive way”, says Carlos Smerdou, CEO of Foro Consultores. In this sense, the Bank of Spain has recently reviewed its forecast for the impact of Covid 19 on the economy, with a contraction of between 9% and 15% this year, after a fall of 5.2% in the first quarter. The body expects unemployment to rise to 24.7% in 2021, a figure not seen since 2014.

Read the full article in Spanish.


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