The impact of ECB monetary action on the Real Estate Market
- Earle Martins
- Dec 9, 2022
- 1 min read
Updated: Dec 19, 2022
The RICS/Ci Portuguese Housing Market Survey is a monthly sentiment survey of estate agents and developers who operate in the Portuguese residential sales market.
The PHM Survey gives you an insight on how agents are reacting to new developments in the Real Estate market, specially due to tighter monetary policy from the ECB.
Interest rates are going up, trying to stop inflation, but by doing so, the housing market is obviously retracting.
The perspective is for less sales at a lower price.
Tarrant Parsons, RICS Senior Economist, said about this problematic:
‘‘The Portuguese housing market remains under pressure, with activity falling and price growth losing momentum. Given the troubled economic outlook across much of Europe, it is not surprising that there has been a slowdown in demand amid the continued tightening in monetary policy. Looking ahead, the future profile for inflation will be key in determining how much further rates need to rise which remains difficult to assess at this stage.”
This is definitely a time to negotiate better prices and maybe doing some good business, this if you are buying, but, at the same time, it’s time to cool down if you are selling, with no need for hurries. This two different approaches will slow down the market, waiting for the sun in between the dark, heavy clouds.
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