Potential Increase of up to 1500 Mortgages a Day within 4 years says Oliver Wyman

Posted by on Sep 9, 2016 in News

The awakening of the housing market in recent months no going back. All indicators blow for the recovery of the sector: Gross Domestic Product galopea development with an annual 3.2%, interest rates remain at historically low levels and banks have begun to relax the criteria for lending money against the need to encourage your bottom line. In this scenario, the consultant Oliver Wyman expects the number of loans for buying a home will triple in the next five years and reach 550,000 signatures annually by 2020. This figure would amount to the creation of 1,500 new mortgages every day from about six hundred that they are signed today. Behind this rise brick predictable acceleration lies in the creation of new households -the lower level of unemployment leaves, among other things, that young people can become independent and before- and impounded demand for houses along the crisis that could achieve almost 300,000 homes. In the latter case, it is families who have waited for years to buy a property but have always had the doubt to take the plunge hoping improve the economic situation and the cost per square meter continue falling. Since 2007, year in which peaked, the cost of the residence had sunk to 42%. However, the index published monthly by the valuer Tins, warns that the cost has bottomed out and accumulates between the months of January and August, a slight increase of 0.2 percent. Cost improvement is guided by the purchase of apartments -destinada eminently to second housing- and in large cities. Oliver Wyman estimates that mortgages signed forecast for 2020 corresponds to the “equilibrium level” of an economy the size of Spain. That is, the signing of 1,500 credits or mortgages every day would not involve the creation of a new housing bubble similar to that recorded between 2005 and 2007. At that time were signed a year in Spain 1.3 million mortgages : one for every 35 inhabitants. Read...

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