Investor Sergio Iranzo predicts that those with cheap mortgages will not sell their homes and that the market will become stagnant. He compares Spain's situation to that of the United States.
According to Marca, real estate investor Sergio Iranzo believes that Spain may experience a repeat of what already stalled the housing market in the United States: homeowners with very cheap mortgages will be reluctant to sell to avoid losing those conditions.
Iranzo argues that the country is increasingly resembling the United States in terms of interest rate trends. According to his analysis, there, mortgages are around 6 and 7%, a level that, in his view, has stagnated housing.
"Housing has stagnated and we are talking about interest rates double that of here."
The investor estimates that in the United States, many buyers signed mortgages around 3%. In Spain, the equivalent would be loans between 1 and 2%, and those holders would also have no reason to sell.
"A lot of people signed very good mortgages around 3% there; here the equivalent could be between 1 and 2%, and they are not willing to sell their homes to avoid losing those great mortgage conditions."
For the future, Iranzo envisions a scenario with interest rates between 3 and 4%. In that case, according to his forecasts, people will prefer to stay in their homes with cheap financing.
"Selling a home will be a luxury because you will be financing at double the cost."
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