House prices in Portugal continue to rise

By TPN/Lusa, in News · 05-09-2019 15:38:00 · 1 Comments
House prices in Portugal continue to rise

House prices in mainland Portugal increased 14.8% year-on-year in the second quarter and rose 3.9% on the previous quarter

"The year-on-year increase is in line with the pace of market appreciation over the last two years (since July 2017), almost always around 15%," said Confidencial Imobiliário, recalling that in quarterly terms, the trend is also of stabilization in the rate of increase, with variations remaining between 3% and 4% since mid-2017, also the cycle of greater chain appreciation since 2007.

The Residential Price Index is calculated based on actual transaction prices, and this indicator follows the evolution of housing valuation in the country.

The last two years mark the "definitive recovery" of the residential market, as for the first time in ten years, prices increased by more than 10%.

The highest year-on-year change in this cycle of rising house prices was recorded at the end of 2018 (October and November), with increases of over 17%.

The director of Confidencial Imobiliário, Ricardo Guimarães, warned that "despite the strong appreciation, the price levels reached in the meantime seem to be holding back the expectations of operators, who are increasingly cautious about price evolution."

"The market itself is reacting to this upward trend, with a robust launch of new offerings," he said, adding that "there are around 93,000 new homes in the pipeline since 2017.

This is a volume that is seen by real estate agents as an important response to stabilise the price increase, having the potential to solve the pressure of demand and the lack of supply in the market.


Comments:

Whilst rising prices are good news for sellers buyers need to be aware that this contradicts à Europe wide stagnant or lowering house prices. We are in a negative interest rate era so inflation is not an issue. Japan has suffered from negative rates and a very slow growing economy.
House prices are governed by supply and demand but employment and economic growth serve to drive prices up or down.

by Lexicycycle from UK on 06-09-2019 08:24:00
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