The price of houses should take into account the ability of buyers

Even in the current uncertain context, with high interest rates on bank lending and the rising cost of living, there is still interest in buying a home in Portugal. The issue is that there is a "big gulf" between the prices of houses for sale and the amounts that families can actually afford, which reduces the volume of home sales in our country. This is why Ricardo Sousa, CEO of Century 21 in Portugal and Spain, decided to "adjust the offer to the purchasing power" and, as a result, "increased the number of our transactions in the second quarter," he says in an interview with idealista/news.

Home sales slow down in Portugal

Not only because of high house prices, but also because of''their purchasing power'. That's why this network of American origin decided to change its strategy of finding and selling houses: "It's as simple as adapting the offer to their purchasing power". Specifically, in this large real estate company in Portugal and Spain, the average transaction has decreased by about 20% to 140 thousand euros. And as a result: "We increased our transactions in the second quarter by 42% compared to the previous quarter," shares Ricardo Sousa, CEO of Century 21 in Portugal and Spain, in an interview with idealista/news.

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How are home sales going in Portugal?

It is true that in the current context there is a general decline in the number of transactions due to a mismatch between supply and purchasing power,''especially young people. As mortgage interest rates have increased, house payments have risen and home buying has become more difficult, reducing the number of available homes for purchase.

However, the expected number of transactions for 2023 and 2024 will remain very level and gives us the prospect of a steady market in the coming years. There will be a decline, of course, but we will end the year with a number of transactions around 150 thousand in Portugal. And in Spain, it will certainly be over 500 thousand sales.

"We have reduced the average transaction amount by about 20% to 140 thousand euros in the first half of the year. "

How are you adapting your real estate mediation strategy in the face of reduced demand?

Naturally, the number of transactions will decrease, but this does not mean that there is no demand.'''instability. But there is available financing for such cases. At any rate, these situations determine housing needs because they can change family structures. When you say that you have reduced the average price of houses for sale by 20%, do you mean that you have started to attract cheaper houses instead of, for example, houses costing 200 thousand euros?