House prices may soon return to decline. The Bank of Italy predicts a new possible contraction in the housing survey, which while signaling that signs of price stability prevail in the second quarter of the year, also records declining prospects for the third quarter.
According to the assessments of the 1,465 real estate agents interviewed, the outbreak of the war in Ukraine and the recent increases in inflation are affecting downwards both the number of potential buyers (for about 60% of agents) and the selling prices of houses (for about 40%).
Mortgage applications are also holding back: the share of sales financed by mortgage loans fell to 67.5%, compared to 69.7% in the previous quarter. Rental rates are also reported to have slowed slightly, with a balance between increases and decreases that was slightly decreased, albeit positive: 20.9% from 22.5%.
The real estate market also continues to feel the effects of the pandemic. The share of agents prevails who assess how the pandemic is inducing, on the whole, an expansion in the demand for housing (26.9% more than those who believe it has negative repercussions). On the other hand, on the supply side, the share of operators who believe that the pandemic is causing a decrease in the supply of housing is about 10% higher than that of those who believe it is causing an increase.
Source: Ansa
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