Are you thinking to buy a property in Mallorca? In the last few months, the real estate market is experiencing a slight recovery from the situation that had been experienced since the crisis that broke out in 2007. One of the reasons for this has been that, little by little, the labor market has been improving and also that financial institutions are becoming less restrictive when it comes to granting mortgage loans.
This period of general economic recovery has meant that the market for buying and selling flats has been reactivated and many people are once again interested in becoming owners of a property. But is now the best time?
In today’s post we will discover when is the best time to buy a property in Mallorca flat by analyzing the previous years and seeing how the market is evolving according to the season. Both economic and socio-political reasons are what determine the market situation and, therefore, it is important to take into account all the factors that can upset the balance.
The best time to buy a house
Mallorca property business has its own times.
It is common for a buyer interested in accessing the real estate market to wonder when is the best time to buy a flat because, in this way, he ensures that he will be able to have the best prices as well as a wider and more varied offer of properties.
So we can say that there are a good amount of property for sale in mallorca on summer, but we can say that it’s not your best deal.
You have to know that, in general, with the arrival of the good weather the real estate market is reactivated. Although it is true that there is not a specific season of the year in which a greater rise in the sector can be clearly observed, there is a relationship that links the good weather with the search for a new flat.
At least, these are the data that have been collected by the notaries and that indicate that, as of spring, the purchase and sale of real estate is on the rise. From then on, it follows an increasing trend until it plummets in the month of August. This is the worst month to look for a property to buy as many real estate agencies close and many owners go on holiday.
In a graph, the curve of the buying and selling of houses would begin to grow exponentially from March/April until August where, it would not stagnate, but would fall into a tailspin. But after the holidays, the activity revives again and autumn is also a good time to invest or acquire a new property.
Therefore, if you are in doubt about the best time to buy a flat, the answer would be in spring and autumn. In the summer and winter months the market is more stopped or falls due to the holiday periods we live in some of these months.
And, if we have to choose one of the two seasons, the autumn season would be the best to carry out this operation because it is in the first quarter of the year when some legislative or tax changes can be made that can affect a buyer without him/her knowing beforehand. Therefore, autumn would be the best time to buy a flat in our country.
Similarly, property searches follow a similar trend to buying. Generally the month with more searches is usually January and then there is a progressive decrease until August, which more than being a valley month, is a month with almost no activity. In fact, summer is usually the period of least activity as both potential buyers and agencies go on holiday.
September is the second peak of the year in terms of apartment searches. In October the trend continues and in November there is a drop until December, which is a month where almost nobody is looking for a flat.
Economic factors to take into account when buying a flat
Now that you know that autumn is the best time to buy a flat and summer when you look for it the most, we are going to analyze some aspects that we think you should take into account if you are thinking of buying a flat.
The current mortgage situation
In recent times the banking situation has been quite delicate, something that has conditioned the granting and interest rate of mortgages were fluctuating and presenting significant changes from one year to another. Variable-rate mortgages began to emerge during the crisis and then gave way to fixed-rate mortgages; however, the current situation of mortgages is one of stagnation. Prices are stagnant and, therefore, everything points to interest rates tending to rise.
In fact, at present banks are once again increasing the fees for their products and services but the situation is still optimal for those interested in buying, as prices are still quite low. However, it is expected that the economic situation will continue to improve and as a result banks will further adjust their prices to achieve more profits.