Number of homes for sale in Portugal falls 16% in the third quarter of the year.
Source: Pexels
Author: Redaction
The
third quarter of the year is already showing the first signs of the
impact of the increase in interest rates with the sharp drop in the
number of properties available for sale: 16% less compared to the
previous quarter (from 53,350 properties to 44,567) and 30% less
compared to the same period in 2021, revealed today the real estate
consulting company Imovendo in an analysis of the national market,
according to a statement sent to SUPERCASA Notícias.
The
decrease was more dramatic in the metropolitan areas of Lisbon (less
7,000 properties than in the 3rd quarter of last year) and Porto (less
3,600 properties), however, it is transversal to all regions of the
country.
The average price of property is also falling and has
already registered significant drops. On the supply side, the fall in
the third quarter of the year was more than 7% in comparison to the
previous quarter, falling from €464K to €431K.
On the property
sales side, the decrease was 5%, with the average price falling from
€238K to €226K in the penultimate quarter of the year.
"This fall
shows that there is already some difficulty in selling higher value
properties, as well as the owners' lack of knowledge of the real value
of the house, which until now has been overvalued," explains Nélio Leão,
Imovendo's CEO.
The price per square metre for new properties,
which has always been on the rise, is also falling and registered a
slowdown of around 3% in the 3rd quarter of the year. The same does not
apply to used property, where values have remained stable.
The
slowdown, already anticipated in a period of foreseeable crisis, is
attributed to the increase in inflation and interest rates, which leads
to a reduction in consumer confidence in the market.
In addition,
rising interest rates have a significant impact on the effort rate of
potential buyers, making access to credit more difficult.
"What
is happening on the supply side is something very unusual: the decrease
in supply accompanies the decrease in price. And this is happening due
to the fact that inflation is in double digits, that there are
expectations of rising interest rates," says Nélio Leão, adding that
these factors have a huge impact on consumer confidence.
"The
trend, within 6 to 12 months, is that these two indicators are in
dissonance, more supply, lower price, or less supply, higher price,"
adds Imovendo's CEO.
If this trend continues, it is expected
that in the coming months there will be an increase in available
inventory, that is, growth in supply and, consequently, a decrease in
property values.
On the sales side, the slowdown has been slower,
but the signs of change are already visible. In the third quarter of
2022, there was a 5% decrease compared to the previous period and a 4%
decrease compared to the same period in 2021.
The Metropolitan
Area of Porto was the area that felt this decrease the most, falling 10%
in terms of sales when compared to the same period last year.