Connect with us

Economy

The real estate market will “cool down” (but house prices are not the same)

Published

on

Home loan: Interest rates have already risen more than in the 2008 crisis See how far they can go

The lack of supply in Portugal is one of the factors that should be taken into account so that housing prices do not fall in the near future, even in an uncertain scenario and an expected decrease in sales. For those who want to take this step, the advice is simple: if the bank doesn’t give you that much, lower your expectations, choose a smaller house or a little further from the center.

Rising interest rates, reduced purchasing power, restrictions on mortgage loans. The perfect storm is brewing for homebuyers. For now, the main real estate chains in Portugal are not feeling the impact. But no one excludes that in the coming months there will be a break or, at best, “stabilization” of the number of transactions.

“The market will cool down. This is normal,” sums up Ricardo Guimarães, director of Confidencial Imobiliário. The consultant estimates that 37,900 homes were sold in Portugal between June and August, down 8% from the first quarter.

However, Century 21 executives Keller Williams (KW) and Era assure CNN Portugal that the company’s results, through at least August, are up year-over-year, in double digits. But they do not hide the fact that the coming months may bring changes in the balance sheets.

“The market is stable, there is no panic. It is only natural that there could be a slight reduction from now on,” says Rui Torgal, CEO of Era Portugal. Ricardo Santos, head of Century 21 in Portugal, argues that “market stabilization is inevitable.”

See also  BCP's profit rose 500% to $74.5 million. Miguel Maya rejects 'profits that fell from the sky' - IVF

At KW, says Eduardo Garcia i Costa, “growth remains very strong, but has slowed over the past four months.” “There is a lot of confidence that demand will decrease. The big uncertainty is what will happen to the proposal,” he adds, given the current context.

There are several warning signs in the market. In August, according to the Bank of Portugal, the number Bank ratings downgrade for third month in a row and Home loans register first slowdown since October 2020.

And if between April and June In Portugal, 43,607 houses were sold. (up 4.5% year on year), “in June, for the first time since February 2021, there was a decrease in the number of transactions“, INE warned.

The warning signs come as no surprise to the real estate sector, not least because the past few years have been exceptionally strong. “The market has grown a lot in the last two years. Any correction that could happen now is not surprising. If I didn’t fix it, it would be weird,” notes Gonzalo Nascimento Rodriguez, real estate finance consultant.

Will housing prices fall? Do not count on it

If there are fewer sales, home prices will eventually fall. This will be the first thought of those who evaluate the purchase in the current context. But the best thing would be to “pull the horse out of the rain”: despite the uncertainty, houses will not become cheaper.

And there are three factors that explain this outlook for the future: lack of supply, declining returns on deposits are encouraging more Portuguese to invest their savings in real estate, and the interest of foreigners is growing. From April to June, foreigners bought 2,783 houses in Portugal, representing 6.4% of the total number of transactions.

See also  Tesla owner implanted a chip in his hand, which is the key to the car

Then the law of supply and demand makes its contribution. Only 39,000 homes were listed for sale in Portugal during the summer, the lowest in 15 years, according to Confidencial Imobiliário. Before the pandemic, there were about 60 thousand.

“I expect that the reduction in demand will not be enough to reduce prices,” says Ricardo Guimarães. Homes may cost less, he says, but they won’t stop following the trend.

And the numbers so far help to confirm this: in the second quarter of 2022, according to INE, houses were 13.2% more expensive than a year ago. Real estate agents say the average transaction value is also higher. “The gap between supply and demand, even with such a small reduction, will not cause a slowdown in prices,” emphasizes Rui Torgal da Era.

The market is not expecting an increase in new construction, not least because rising material costs are making these investments less and less attractive to companies. Thus, the potential impact of uncertainty caused by rising inflation and interest rates is masked. The logic is simple: if there is not enough supply, there is more pressure on prices, which means there is less opportunity for them to fall due to uncertainty.

I want to buy a house. How to adapt to climbs? low expectations

Rising interest rates affect the amount that households can borrow from banks. If interest weighs more on the total pie, and without changing the effort rates, there is only one solution left: to pay the same maximum fee, they must reduce the amount actually allocated for the purchase, which must leave even more aggregates out of reach. to loans. .

See also  Born 15 years ago in Braga, Forte Store opens store number 50 in Portugal.

“If they’re going to pay more for a loan, they can only pay less for a house,” sums up Gonzalo Nascimento Rodriguez, real estate finance consultant. And how do you do it when prices are still high? Lowering expectations. This is something that is already happening with clients who are increasingly intimidated when looking for real estate networks.

“People may even put off the decision to buy a house. But there is a limit. What we see is an urgent need for people to distance themselves from major urban centers,” explains Paulo Caiado, President of the Association of Real Estate Professionals and Companies of Portugal (APEMIP). In Lisbon, the search takes place, for example, in places like Sobral de Monte Agraço, Torres Vedras or Lourinhao.

In addition to increasing the search radius, it also reduces the size of the house. “We’re refocusing your preferences,” says Century 21’s Ricardo Souza.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners

Published

on

Everything has been delivered.  10 Bugatti Centodieci are already in the hands of the owners

OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.

“The Centodieci combines all the values ​​of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.

This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.

This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.

Recall that each unit costs the owners eight million euros before taxes.

Read also: We already know when the Bugatti Centodieci fell into the hands of Ronaldo.

Continue Reading

Economy

The first Dacia hybrid. “The cheapest hybrid family on the market”

Published

on

The first Dacia hybrid.  "The cheapest hybrid family on the market"

BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.

The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.

The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”

Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.

Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.

Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.

Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…

Continue Reading

Economy

See how Tesla tests its electric Semi truck in the worst-case scenarios

Published

on

Tesla Semi camião elétrico testes

Tesla has finally been able to bring its long-awaited Semi to market. This electric truck promises to revolutionize transportation and bring all the unique characteristics of this type of electric vehicle to this class of vehicles.

Now that the first units have been delivered, there is hope that they will finally be mass-produced and reach more transport companies. With so many promises to be kept, a new video is now emerging showing Tesla testing its Semi truck under worst-case scenarios.


Tesla Semi is already on the market

Like all Tesla electric vehicles, Semi follows the same line of creating a unique design associated with a platform with the most modern technology available. The proof is in what was presented to the public and surprised most people.

To prove the quality of this new proposal, Tesla published in your LinkedIn account new video. In it, he reveals some of the testing he's done to determine the strength and quality of the Semi's design and its (potential) durability.

Tests to prove its durability

It has been revealed that the Tesla electric truck is subjected to numerous tests and its application in the worst scenarios that drivers may face. It doesn't stop at the ruggedness of the Semi's designs, but goes further and focuses on the motors and batteries themselves.

This is the proof that many have been waiting for to ensure that this new proposal is not limited to a lot of autonomy. Its resistance is great and will provide greater durability, further enhancing the Semi's value and performance.

See also  In seven months, the Fed may end stimulus. And Reaffirms That Inflation Is Temporary - Monetary Policy

high quality electric truck

Tesla has already showcased the Semi's quality with a video showing its truck driving roughly 500 miles on just one charge. The big news here is that he managed to make this long journey with a maximum load of about 37 tons.

Now Tesla remains to widely place the Semi on the market. At the moment, only a few companies have access to this new product, with a very long list of pending deliveries, who want to start mass-using this electric truck offering.

Continue Reading

Trending