June 25th, 2024 | 7:16

Bizkaia

Mortgage firm in Euskadi plummets by 17,6%

Euskadi mortgages

Mairenis Gomez

January 26, 2024 | 8:26 a.m.

The economic impact in Euskadi during the month of November

The most recent data provided by the National Institute of Statistics (INE) has cast a shadow over the mortgage market in the Basque Autonomous Community. In November, the mortgage firm in Euskadi suffered a drop of 17,6% compared to the same month of the previous year. This phenomenon is not only a local issue, since at the state level, the number of mortgages on housing also decreased by 19,1% during the same period. These numbers raise important questions about the state of the housing market in the region and across the country.

The decline in Euskadi

The signing of mortgages in Euskadi is a crucial indicator of the economic health of the region. November brought with it a 17,6% decrease in mortgage signing, which translated into a total of 1,555 housing loans established in the Basque territory. This decline has generated concern among residents of Bilbao and the province of Bizkaia, since the purchase of homes has been a fundamental part of the life and investment of many families in the region.

The national context

However, the problem does not stop at the borders of Euskadi. At the national level, the situation is even more challenging. The number of mortgages on homes throughout Spain experienced a year-on-year drop of 19,1% in November. This marked decline represents the tenth consecutive month of negative rates in Spain's mortgage market.

Impact of the pandemic

Undoubtedly, The COVID-19 pandemic has left an indelible mark on the global economy, and Euskadi has not been an exception. The economic uncertainty it has brought has led many to be more cautious about long-term investments, such as purchasing a home. Concerns about financial security have discouraged some potential buyers.

Prospects for the future

Despite these challenges, Some experts believe that the mortgage market in Euskadi has the potential to recover. The region remains attractive to investors, and demand for housing, although reduced, persists. In addition, authorities are taking steps to address the shortage of affordable housing and facilitate access to mortgage loans.

Euskadi mortgages
In November, the mortgage firm in Euskadi suffered a drop of 17,6% compared to the same month of the previous year

Challenges and opportunities in the mortgage market of Euskadi

Ultimately, The mortgage firm in Euskadi has experienced a significant decline of 17,6% in November, reflecting a national trend of negative rates in the real estate market. Factors such as the pandemic, lack of affordable housing, and changes in lending policies have contributed to this situation. However, the region maintains its attractiveness and there is potential for a recovery in the future. Residents of Bilbao and Bizkaia, as well as potential buyers, should be aware of changing market conditions and make financial decisions with caution.

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