Housing: buy or wait?

Doubts set in, it's perfectly understandable. With the increase in interest rates, many are those who believe that the prices of houses or apartments may come down and, thus, wait for a better buying opportunity.

Buy now or wait for the price to drop? What is the best alternative?

Are prices really going to fall?

Much has been written and spoken about the impacts of rising inflation. We ourselves have tried to explain to our clients the possible impacts that the increase in inflation can have on the real estate market.

With regard to a possible impact on house prices in Portugal, the rise in interest rates – a consequence of rising inflation – may lead to a downward correction due to the fact that, in this way, the Portuguese lose purchasing power .

More expensive credit – therefore less accessible to most buyers of permanent housing who use it for this purpose – causes this reduction in purchasing power in housing.

Now with a lower purchasing power, prices are expected to correct downwards.

Additionally, the increase in interest rates may also cause – at least some believe so – an increase in bad debts, giving rise to some buying opportunities at lower prices.

Is the price, per se, the most important issue?

When someone decides to buy a house, they should bear in mind that their decision should be considered and considered for the long term. It makes little sense to acquire a home for our own use if we expect to need it for a short period of time.

The purchase price, of course, is an ever-important variable. The buyer must be informed about market conditions, both in terms of prices and in terms of financing, in order to make correct and informed decisions and not jeopardize his future.

However, the decision to own and permanently acquire must be intrinsically linked to other factors that go far beyond the purchase price: location, typology, areas, accessibility, services and equipment nearby, distance to the place of employment and to children's schools, distance from closest family members, neighborhood, public transport.

All this must be very well aligned with the needs and expectations of the buyer, but above all with the timeframe that he expects to occupy the house he intends to buy.

So, before buying or looking at prices, look at yourself, at your life, envision your future, define your needs well and then, yes, start looking and analyzing everything else. Because even if prices fall, in the long term, history has already taught us that they recover again and rise even more.

Good business!
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