The home buyer's mentality: prices are high but will continue to rise

Published on November 29th 2017

Acquisition interest grows to put the house for rent. The average age of the buyer is 41 years

In full rise in housing prices after years of adjustment, seven out of ten buyers who closed the acquisition of the property or continue looking in the last year consider that the prices of housing are expensive or very expensive, according to a report by Fotocasa . But, in addition, 68% think that prices will continue to grow, compared to 28% that predicts a stagnation. Is the myth that the price of housing never goes down again?

If the price of the house depended exclusively on supply and demand, without further conditioning, than the predisposition and perception of buyers and sellers, it is clear that it would continue to rise. The study Experience of purchase and sale of housing in the last year of Fotocasa, through surveys of more than 3,000 people, highlights that 25% of buyers consider that prices are very expensive and 43% somewhat expensive. That is, 7 out of 10 buyers who were active in the last year consider that housing prices are high.

This feeling is greater for those who are looking than for those who have already bought: 17% of those who have bought believe that prices are very expensive. More than half of last year's buyers believe they have bought expensive or very expensive. The percentages are higher in the cases that are looking to buy housing, rising to 76%.

On the part of the sellers, who have sold or want to sell, they are more cautious in their valuation. 50% do not consider them expensive or cheap. In addition, it contrasts the fact that if for 68% of the total population that participated in the market of the purchase last year, the prices were expensive, in the case of sellers this percentage is reduced to 30%. Also about evolution. 45% believe that prices will continue to increase compared to the 49% expected to be stable.

 

Source: El Economista

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