Real estate market, the great cold continues. A third less mortgages in a year, -11% for sales
MILAN – The high interest rate effect continues to hit the real estate market hard. According to data released today by Istat from a notarial source, in the first quarter of 2023 sales recorded a decline of 5% on a quarterly basis and 11% on an annual basis. The decline is even larger for mortgages, loans and other bonds with the creation of a real estate mortgage, which fell by 12.6% compared to the previous quarter and -31% on an annual basis. On an annual basis, home sales are reduced in both large and small towns (-18.3% and -6.4% respectively). Sales in the economic sector, on the other hand, increased (+1.5% and +1.6% respectively).
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“After eight consecutive quarters of growth, recorded between the third quarter of 2020 and the second quarter of 2022, the last three show a contraction which is mainly driven by housing, the driving sector of the entire real estate market”, comments Istat. “Mortgages, loans and other bonds with the creation of a real estate mortgage are ahead of the declining trend by one quarter which, both at a trend and economic level, has been observed since the second quarter of 2022. The decline becomes more intense in the third and fourth quarters of 2022 , until reaching the most marked negative variations in the first quarter of 2023, after those already highlighted in the second quarter of 2020”, continues the text.
In the economic comparison, housing shows negative percentage variations in almost all geographical areas of the country (North-West -11.3%. South -4.7%, Center -4.3%, Islands -2.2%), with the exception of the North-East which, on the contrary, is growing (+1.0%). The economic sector increases in the North-East and the Center (+13.0% and +6.9% respectively), while it remains substantially stable in the Islands (-0.1%), in the North-West (+0.4% ) and in the South (+0.5%)..
On an annual basis, the housing sector shows negative percentage variations throughout the country: North-West -16.5%, Center -16.0%, North-East -7.8%, Islands -4.9% and South – 4.6%. The economic sector grows in the South (+5.5%), in the North-East (+2.8%),
in the Islands (+1.0%) and in the North-West (+0.7%), while it decreases in the Center (-1.8%). 93.9% of the agreements stipulated concern transfers of ownership of properties for residential use (197,547), 5.9% those for economic use (12,474) and 0.3% agreements for special use and timeshare (670) .
Compared to the first quarter of 2022, real estate transactions decreased by 11.6% in the housing sector and increased by 1.6% in the economic sector
