Monday, October 2, 2023

Home prices continue to rise

With a low pace of construction, launch and reduced sales of housing in the country, to which is added the high cost of inputs for construction, the prices of new housing continue to rise and for the second quarter of this year the increase It became the highest. number of 11 years.

According to Dane, its annual change for that period is 10.1% and 6.12% in the current year, according to data from the New Housing Price Index (Ipvn), recently published.

And it is not only the first time in the last decade that a double-digit figure is presented in the consolidated, but in the sectors the progress is seen more. The most affected are houses, which in the second quarter showed an increase in prices of 12.42% per year.

In apartments, the increase in the sales value of these properties reached 9.99% per year.

According to Paola Suárez, vice president of, this year in Colombia 62,000 fewer units were sold than last year, because credit rates reached a maximum of up to 23%, which seriously affected in the power to take the house. .

However, the prices will not stop, because the loan rates of the builder have reached double digits and are continuing.

Selling the house

It is worth mentioning that the highest change recorded in IPVN, before the second quarter of 2023, was in 2014, when prices increased by 9.99% in the second quarter, explained by Armando Palencia , then director of Macro Studies. of the District Planning Secretariat, provided in part by increasing the demand for low-income households, through interest rate subsidies.

After that increase, the indicator seems to have remained low every year, but after the pandemic it gradually returned.

In the second quarter of 2021, new home prices barely grew 3.39% annually, and a year ago, they rose to 8.74% and now rose to 10.1% in the second quarter.

As for this year, the pressure started strongly in the first half, where prices rose 9.39% more than immediately last year.

According to a report by, this dynamic occurred due to the reduction in the supply of new housing, especially in the Social Interest Housing (VIS) segment, which caused an increase in prices.

“This behavior is due to the reduction in the supply of new housing, especially in the VIS segment, which causes an increase in prices, added to the new supply and the trend of country houses outside of those who first town,” they said. at that time.

This, among other factors, is due to the decrease in the number of units offered, with a decrease of 67.8% in VIS, while the sale of VIS housing with renewal increased by 36.1%.

In No VIS there was a 29.9% decrease in sales of up to $300 million, “while there was a greater difference in the ranges of $300 million to $400 million (-55.6%), from $400 million to $500,000 million (- 57.8 %) and $1,000 million to $1,300 million (57.9%),” the report explained.

However, Suárez has an optimistic vision for the second half of the year, where he predicts that interest rates will drop and housing demand will increase, since this is one of the factors affecting the activity of construction.

“Mortgage credit rates for the purchase of new and used housing experienced a decrease, to 4.7% for Social Interest Housing (VIS) and 3% for houses that exceed the amount of 135 and 150 minimum wages (No VIS),” he said.

For the executive, this reduction in rates and the possibility of obtaining subsidies through compensation funds will allow the dynamics of the sector to change in the second half of the year, as well as the announcement by the Government to extend the program deadlines. Mi Casa Ya’ until December 2023 to apply the dynamic change.

With this plan and the possible drop in rates, experts predict that the market will be reactivated in the second half and that the inventory will rotate further.

Nation World News Desk
Nation World News Desk
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