Mortgages in Alicante after the pandemic

We finally return to our blog, it has been a long adventure to redo the web, make it fast and cool for all of you users who make it possible for this blog to work.

After this crazy year of pandemic, we want to see how sales have evolved in Alicante since 2020, for those of you who have already forgotten, the first closure occurred in March, during the first quarter of 2020, and we returned to the street between May and June .

Without further ado, let's see some small tables!

Sales in the province of Alicante

Number of second-hand homes sold in the province of Alicante

We do not yet have data available for the 2nd and 3rd quarters of 2021 for the province of Alicante, but what we can see is that second-hand home sales in 2021 have exceeded those made in 2019 (and obviously those made in 2020). . The second quarter of 2020 was very hard for both real estate companies and investors and sellers, but quarters 3 and 4 of 2020 made up for it. The total balance was 30.799 homes second hand sold in the province in 2020. in front of 35.912 de 2019, 15% less.

Sales in the city of Alicante

Number of second-hand homes sold in the city of Alicante

For the city of Alicante, we see a similar progression, although our first quarter of 2021 has not been able to surpass that of 2019. Second-hand home sales in 2020 there were 4.162 compared to 5.917 in 2019, which is 30% less. Which explains the fall in prices in the real estate market.

What effects did the lower number of sales have?

The main and most obvious has been the increase in supply and the fall in prices, which for the city as a whole is 3,5% year-on-year according to data from Idealista. This situation makes it a excellent time to buy. Selling is also an interesting time, as buyers are looking to make the most of the situation.

A good way to get the most out of your home is to Home Staging, if you want to know more you can consult is located here.

This drop has not been the same for all the districts of Alicante, as we can see below, but it is noticeable in most of the city.

DistrictM2 July'21Var. monthlyVar. quarterlyVar. Yearly
Hillock963 € / m2-0,2%+ 0,9 %-1,6%
High Carolinas899 € / m20,0%+ 0,2 %-4,2%
lower carolinas1.000 € / m2-0,2%+ 1,0 %€0,0
Ensanche-Diputación1.914 € / m2+ 0,4 %+ 1,8 %+ 3,6 %
Market1.557 € / m2-0,2%+ 0,2 %-3,2%
benalua1.372 € / m2-1,0%-1,6%-9,3%
Florida1.033 € / m20,0%-2,6%-7,8%
Alipark1.418 € / m2+ 4,0 %0,0%+ 9,0 %
San Gabriel1.310 € / m2-0,7%+ 0,1 %-4,5%
Los Angeles900 € / m20,0%+ 2,3 %+ 2,0 %
The PLA1.073 € / m2-0,5%-1,3%-1,3%
Avdas Park.1.624 € / m2-0,6%-0,2%-1,6%
San Blas1.199 € / m2+ 0,1 %-3,7%-6,5%
Source: Idealista

And how has it affected mortgages?

Number of mortgages processed in the province of Alicante
* Data only for April and May 2021

In 2019 in the Province of Alicante, 22.399 mortgages were signed, compared to 20.294 in 2020, a 10% than in 2019. What may have resulted in the fierce competition that banks are having. And it is that even with provisional data, from Business Insider Spain it is revealed that the home purchase credit firm has grown 35,1% in March and 32,1% in April compared to the same period last year nationwide, it remains to be seen if we have exceeded the 2019 data both in the province and in the city of Alicante.

And what is the star product? Given that variable interest rates remain negative (Euribor at -0,484% in June), banks have opted for fixed-rate mortgages, which are currently around 60% of those signed. And it is not for less, since approximately 70% of buyers need to resort to personal loans or mortgages to be able to buy.

If you have come this far and are looking for financing for the purchase of your home, consult with our experts, to finance up to 100% plus expenses, without obligation.

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