Real estate market trends in 2020 for buying or selling a home
Any owner who owns a house or is in the process of owning one is concerned about knowing the trends in the real estate market in 2020 for buying or selling a home. According to the experts, we are heading for a slowdown in the market, which will stabilize this year and present a moderate price increase.
Thinking of the owners with houses for sale in Costa Brava or who are thinking of buying an apartment, we have elaborated a series of trends that are foreseen for 2020 according to the studies carried out by different specialists in the real estate sector. Although the year 2019 closed with a 4.5% increase in the prices of houses for sale, the number of available homes was downward by 3.5%, which experts estimate will remain more or less the same in 2020.
Real Estate Trends for 2020 in Residential Sales
Residential housing has very special characteristics that may sometimes not coincide with the trends of the general real estate market. We are talking about a type of house that is far from the big cities, many times they are used as a second home or as an investment, and it also has an important seasonal component.
The prices vary a lot depending on their characteristics, but sometimes we are talking about an owner with an international profile who wants to buy a house in Playa de Aro thinking about their holidays or weekend breaks. The needs are very different from those of the local owner who is looking for a flat for sale in an area well connected to the city, and will be willing to pay more to cover his daily needs to live all year round.
The most highlighted features for 2020 are:
- Demand will exceed the supply of houses for sale
- A price increase of about 4.5%
- Catalonia, the Valencian Community and Andalusia are the autonomous communities with the highest volume of sales, by housing stock and new work initiated.
- The sale of houses on the Catalan coast – Costa Brava and the Mediterranean coast – moderates their prices, as they have already reached their peak in previous years.
- Catalonia continues to be one of the communities with the highest prices.
Is this a good time to buy a house on the Costa Brava or to sell chalets?
Economic circumstances have led to a decrease in the purchase and sale of houses by foreigners. The British, French and Germans have so far been the majority profile of tourists on the Costa Brava and, by extension, of foreigners with an interest in buying or selling houses or apartments on the coast. In addition to this, the Brexit can affect British tourism, which is one of the most common on the Costa Brava, and the purchasing power of potential British owners.
In 2019, the foreign buyer has made 16.4% of house sales in Spain, and growth is expected to be moderate, around 2%. With regard to the luxury home market, experts point to factors such as national and international political and economic stability, the evolution of currencies and the economic policies of the ECB.
Others, such as the AEV (Spanish Association of Value Analysis), consider that the decision to buy a house is being increasingly delayed, due to the medium and long-term uncertainty of families. They agree with other experts that in certain communities – such as Catalonia – prices have reached the limit that demand can assume. There is even talk of the possibility of an occasional decrease in prices.
All this data means that the news is good for the buyers, and less so for the sellers or investors. Anyone considering buying a house in or around Playa de Aro can benefit from a reduction in price compared to the previous year. On the other hand, whoever is considering putting their hous for sale, it is in their best interest to make a quick decision before the market changes. The trend is stable and with moderate growth, but it can suffer ups and downs.
In Residencial Mas Nou we are experts in real estate management in Playa de Aro. We care about knowing well the trends of the real estate market in 2020 to buy or sell houses in known areas of the Costa Brava. We are specialized in residential sales, from selling houses in Santa Cristina d’Aro to buying apartments in Playa de Aro. We deal with owners and clients to adapt our portfolio of houses, villas and apartments to the needs of each of the parties involved in the sale or purchase of a property.