Interest Rate and Housing

I think the interest rate factor is of great importance in the housing market, but as with everything in life, is not unique. I even dare to propose the idea that in fact not the principal. In my experience in recent field study on the evolution of the real estate sector in the last six months, I noticed that rising rates are more affected owners who already have a mortgage, since it is in periods of review raises its fee and may “drown” the customer whether the transaction in its day was very fair or if the customer’s financial circumstances have altered downwards. In this way I believe in a higher incidence of rates on the decline in sales (11% so far this year) and economic environment. By this I mean that in the first place, now house prices days are not in line with the purchasing power of households (overvalued), this added to the low rates of interest that we have not supported the savings that customers do not have own funds to finance part of the price , so that mortgages should go up very high amounts can not meet with market shares (expected to Euribor at 4.75 at the end of the year). And second, is expected to slowdown in the rise in housing prices for the coming years, and current rates, is becoming unattractive investment in brick, by the uncertainty of prices and terms of capital liquidity invested. Thus investors (large motor sales market not so long ago), hamper or even paralyze their new investment in housing (mostly amateur, those with money to developers played by the inertia of the moment .) This theme would for a very long debate and many magnitudes that should be studied and taken into account, but I think big traits that could be my opinion.

I hope you keep in mind that no doubt left many things out of great significance and nuances on my opinion that maybe I can not express more precisely. For example, land prices (overrated), municipal taxes (the last 1 year in several Southern U.S. states have lowered fees and taxes associated with construction), adjusted prices of the builder, promoter and fund needed all he had not studied the type of housing and customer in the area (it is anticipated that 60% of developers do not renew amateur experience), although this fortunately, more and more professional real estate agents (less than what would be needed) that specializing in management and marketing of new work, whose good work helps to drive down the market to advise all professionals involved.