Homes, prices still high but mortgages on the decline: because the market is at risk of impasse
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High prices but fewer mortgages
House prices are holding up, at least in nominal terms, but sales are down and mortgage payments are collapsing. All available sources are unanimous on this analysis of the real estate market in the first part of the year. Starting from prices, in the first quarter according to Istat’s preliminary estimates, the Ipab index recorded a 1.1% growth compared to the same period of 2022. The annual increase can be attributed almost exclusively to the change in the price of new homes, +5.4%, moreover due to the strong increase in the cost of materials, while second-hand products stop at 0.4%. In comparison with the data for the fourth quarter of 2022, there is a 1.6% growth for new and a 0.2% decrease for used. The IPAB historical series shows that since 2015 new items have increased by 17.8%, second-hand items by 4.6%. According to the latest Istat update, new homes account for 17.7% of the total market.
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Jun 23, 2023
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