The price of free housing rises

by Alex Musk

At the end of 2021, it is time to review its figures regarding housing, where it can be seen that the price of free housing has suffered a certain increase compared to previous years. The figures and reasons for this rise are as follows.

Thanks to the current data obtained from the Housing Price Index managed by the National Institute of Statistics or INE, we can say that the cost of free housing has increased by just over 5.1%, which is its sixth annual rebound, plus it also turned out to be the least remarkable since 2016.

This type of mortgage cost had undergone great changes in its percentages year after year, especially between 2008 and 2013, when the decrease in its percentages became very evident. During 2008 there was a small decrease, of 1.5%, after which in 2009 it shot up to 6.7%. A year later, the drop was much smoother, 2%, but again in 2011, it increased to 7.4%. In 2012 it increased, even more, reaching 13.7%, ending in 2013 with a slightly less forceful decrease, of 10.6%.

As of 2014, the situation began to improve for the price of free housing, since until now, all its percentages had been negative. This is where the percentages progressively begin to turn positive, specifically 0.3%. The following year, in 2015, the increase was 3.6%. In 2016 it reached 4.7%, and in 2017 it reached 6.2%. The last year in which we noticed a notable increase was in the past 2018, with 6.7%. Throughout this last year, there has been no noticeable increase beyond what is usual.

Housing price hikes 

Regarding the price of the types of housing, we can see that the second-hand property barely reached 4.7% in this last year. It is one of the lowest growths registered since 2016. The difference, in this case, is made by brand new homes, since the average of these properties rose to 7.3%, a rebound that had not been seen so evident since the year 2007.

Compared to the end of the year that occurred in 2018, regarding the prices of free housing, these increased by 3.6%. In other words, we are facing a minimum year-on-year rate comparable to that which occurred in the first quarters of 2015. So far, there have been 23 quarters followed by positive percentages.

The most remarkable thing about all this is that in the types of homes, compared to 2018, those that were second-hand had a slightly higher year-on-year rate, of 3.4%, and those that were ready to move indirectly increased by 5,3%.

What are free homes

When we talk about free housing, we refer to all those buildings that have not needed the help of the public sector to be built. Not only companies can be owners, but also anyone willing to make the purchase. It is important to note that, as it does not require any type of public aid, its price is governed solely by the law of supply and demand.

As we have already mentioned, this type of housing can be of two types: new or second-hand. At the time of making the purchase, we must inform ourselves about the advantages and disadvantages that each of them has, and not think that one is better than another, but that we must choose based on our personal and economic situation. It is also convenient to analyze aspects such as the place where the house is located, its price, the type of materials, and the quality it has, among others.

For example, in brand new homes, we find an advantage that makes them really attractive, since it is not necessary to do any type of work on the property, the move can be immediate and should not pose any type of problem for your buyer. This is not guaranteed if a second-hand home is purchased since it can bring with it certain drawbacks, breakdowns, or reforms that are necessary to live there.

In second-hand homes, we can enjoy other types of advantages. Some of them are: decide in detail the decoration that we want to introduce before moving in, unlike houses that have just been built, these are very well located and much cheaper.

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