Real Estate latest publications
Risk of a weak economic recovery and increased volatility in financial markets remains. Banxico publishes Financial Stability Report for 2H20. Total financial savings increased by 8.0% year on year in real terms during the 2Q20, while total financing expanded at a rate of 5.5%.
GDP contracted by 8.7% in the third quarter of 2020 compared to the same period in 2019, while housing sales increased by 4%. In Spain we are used to housing being the cause of recessions and being one of the last sectors to recover. The vigor of the upturn in purchases has therefore been a surprise.
The sale of homes and the signing of permits suffered a notable correction during the months of confinement. This resulted in a drop in residential prices in 2Q20 and 3Q20, the first time since 2015. The correction could continue in 2021, although a recovery is possible towards the second half of the year.
The reform incorporates the possibility that workers can access credits for the acquisition of land ownership for the construction of housing.
In this work, a model has been developed to find out the deviation of housing prices from an estimated equilibrium level, both at regional and provincial level, as well as to forecast its evolution. The results obtained show the high heterogeneity of the Spanish real estate market.
We are currently in the midst of the worst economic crisis that Mexico has experienced in modern times. This has resulted in the sharpest declines in history and deeper impacts than those seen in 1995. Construction is not exempt, and the economic depression that the sector has been experiencing since 2018 has worsened.
The negative impact of the COVID-19 crisis is historic in the construction industry, already weakened by the recession of previous years. It is essential to boost supply and demand in order to recover the lost attractiveness of the real estate sector.
One issue that regularly comes up in the real estate market is knowing whether or not house prices are overvalued, especially when prices increase several quarters in a row. There's no easy answer, because it requires comparing the price with its equilibrium price.