The housing market is going through a complicated situation, since prices do not stop rising for both mortgages and rents and this has resulted in a real estate crisis that makes many people wonder if, With their savings, they will be able to buy a house.
The economist Santiago Niño Becerra has given his point of view in the program ‘Revolution 4.0 of Catalunya Radio’ where he has pointed out that “for years in Spain it has been oriented towards property on the one hand and speculation secondly.”
During the interview, collected by The Vanguardthe media economist has made it clear that those who buy the most homes right now are investment funds and investors. And, in the case of individuals, purchasing has increased but out of fear of what will happen in the future. They are seeing that the price of housing and mortgages are rising and they fear that it will be higher the following year.
“Even if you are tired of paying for housing, within a while it will be inaccessible and then they are afraid of being left out,” he noted. And this is what is causing prices to rise and making it difficult for the citizens of the called middle class can access a house to own.
Very high prices that make people go into debt
That the price of housing is increasingly higher does not surprise anyone. For Santiago Niño Becerra there is a clear explanation. The high demand causes the real estate market to present a decompensation that, in the end, causes the cost to rise.
“There are people who are getting into debt, drowning in credit and asking for money to be able to buy a home, because they are convinced that next year it will be more expensive and the next, even more so.”
Therefore, it remains to be seen what will happen in the future. “Housing that is oriented towards the middle class is going to stop rising, the ability to pay is the natural limit. This means having the capacity to borrow, an increase in salary, a set that no longer allows them to pay more. When that time comes, housing oriented to the middle class will stop rising.”