Wednesday, February 1, 2023

Housing prices have seen the biggest increase in 14 years

houses and portfolios they had the biggest in 2022 Price rise in last 14 yearsDue to high demand, lack of supply, lack of building materials and expansion of digital hosting platforms in some regions.

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According to Inegi, the average rent of houses across the country increased by 3% this whole year, while the price of real estate increased by 2.9%.

Not since 2008 have houses been so expensive to rent and sell in a single year.

Real estate analyst Leonardo Gonzalez pointed out that significant housing backlogs, significant unmet housing needs, low quality of housing stock and high potential demand have led to price increases this year, which translates into approximately 960,000 sales of homes and apartments. of Propiedades.com.

“It was a year full of challenges and economic adversities, characterized by high rates of inflation and high mortgage rates,” he said Universal.

He also highlighted that raw materials and inputs for building construction became more expensive this year, mainly cement and steel, which was transferred to the final value of real estate.

He pointed out that there was a post-pandemic adjustment in costs due to teleworking and because users today value housing more than before the health crisis.

“There was a contraction of inventory in 2022, especially in the social interest segment, which consolidated the middle segment,” explained Gonzalez.

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In the particular case of some regions, such as Mexico City, the so-called digital nomads are expanding, in particular, American expatriates opting for long-term vacation rental schemes, such as Propiedades.com’s real estate offered by platforms such as Airbnb. A new line of real estate development has arisen, along with an increase in rents and displacement of local residents, said the estate expert.

From their point of view, mortgage rates will increase through 2023 bank of mexico (Banksco) shows that the total annual cost (CAT) of mortgage loans averaged 13.5% last October and was the highest in the last decade.

Cat Includes interest rate, commission, installments and insurance depending on the credit.

In fact, according to information from Banksiko, there are institutions that charge mortgage rates as high as 21.2%.

Gerardo Koepka, an analyst at MetaAnalysis, pointed out that CAT started rising because Banxico raised its prime interest rate from 4% to 10.50% over the past year and a half, in order to curb inflation.

The average price of homes with mortgage credits in the country stood at 1,531,000 pesos last September, up 181,000 from a year earlier, data from the Federal Mortgage Society (SHF) indicated.

Quintana Roo and Baja California Sur, the two states most dependent on tourism, saw the most increases in housing prices.

bbva analyzer They warn that inflation may lead to a deterioration in the dynamics of the housing financing balance, as the population has to pay more to buy goods and services of immediate need.

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Nation World News Desk
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