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How long does it take to sell a property: the reasons that are increasing the speed of the real estate market - La Nacion Propiedades
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www.lanacion.com.ar
March 09, 2025
The market is slowly recovering and an unknown indicator is witnessing this growth.
By Maria Jose Lanzi
The reason why properties today sell 7 times faster than a few years ago. Santiago Cichero/AFV
The real estate market is on fire, and several indicators bear witness to this. 2024 closed with nearly 55,000 sales in the city of Buenos Aires, representing a 35% increase compared to 2023, and the best December in 17 years, with 7,667 transactions. Meanwhile, the square meter of listings rose 6.8%, representing the largest increase in the last seven years. Now, another market indicator also bodes well for the sector: the absorption time of the supply of properties for sale.
To put it another way, real estate stock absorption shows how long it might take for what's on offer on the market to be sold. The number is obtained by taking the total property stock (what's listed on a real estate portal in a given month), dividing it by the average number of sales transactions, and then dividing it by 12. Thus, if you take Zonaprop's stock of properties for sale in December (which averaged 103,000 units), divide it by 5,800 (the average number of deeds executed in the last six months of 2024) and divide it by 12, the result is 1.5.
The absorption number of properties for sale results from taking the total stock of properties in a given month, dividing it by the average number of purchase and sale transactions being made, and then dividing it by 12. Shutterstock
In other words, the absorption time for the real estate supply in December 2024 was 1.5 years, seven times lower than the maximum (10.3 years in mid-2020) and "also below the historical average, which is 3 years," says Fabián Achával of the eponymous real estate agency. In other words, in December it took 1.5 years to sell all the properties listed at that time on Zonaprop, while in mid-2020 that number rose to more than 10 years, according to figures from Radar Inmobiliario.
This is a key indicator in the real estate market, as it measures existing demand and the speed at which properties are sold. In this specific case, "it represents a significant improvement because it is slowly approaching the period prior to the boom in UVA loan transactions, when the entire stock was sold in less than a year ," says Achával.
Properties: The absorption time for the real estate supply was 1.5 years in December 2024.Real Estate Radar
On the other hand, there is a factor in the equation that led to the current decline in absorption: there was a sharp increase in demand for property purchases, a result of changing expectations, historically low prices, the increased supply of mortgage loans, and a stable exchange rate. This led to a gradual increase in sales and purchase transactions, reaching almost 55,000 in December. Although monthly growth in the supply of properties for sale was recorded between July and November 2024, the year-over-year downward trend persists. The fact that it has increased slightly monthly recently, even though sales are rising, may be due to the fact that "owners are putting their properties back on the market, seeing the improvement in prices," explains Achával.
Properties: 2024 closed with nearly 55,000 sales transactions in the city of Buenos Aires.Santiago Filipuzzi
The change in expectations is based on the fact that prices remain low. 2024 saw the largest increase in the price per square meter of listing in the last seven years, as no increases of this level have been recorded since 2017 —when UVA mortgage loans were booming in Argentina . However, it is important to keep in mind that, between 2019 and 2023, prices fell by 24%, a percentage that highlights the market's lag, given that listing prices barely recovered by 6.8% last year. In other words, there is still a long way to go to reach 2018 figures.
The reappearance of mortgage loans, through 24 banks, also helped to increase this expectation. This is reflected in sales transactions in Buenos Aires, which increased from 115 mortgage deeds to more than 1,100 in seven months. Looking at the year-over-year figures—taking into account December's figures—this represents an increase of 874.14% compared to the same month last year. "Mortgage loans boosted purchases and generated an acceleration in sales volume, helping to expand demand," shares Martín Boquete, director of Toribio Achával.
The shift in expectations is further evidenced, among other things, by the number of visits recorded on major property listing sites. In January, they reached a total of 19,200,000, representing a 52% increase compared to January 2024, more than double the number, and representing the highest levels in more than four years , according to figures from Daniel Bryn, a broker at Zipcode and Monitor Inmobiliario.
Finally, money laundering is another tool responsible for stirring up the hornets' nest of demand. "It represented another key opportunity for the sector in 2024 and could bring new buyers to the market, especially those looking to invest their formalized savings in real estate," concludes Miguel Ludmer, director of Interwin.
www.buysellba.com
Source:
Cuánto tarda en venderse una propiedad: las razones que aumentan la velocidad que va tomando el mercado inmobiliario
El mercado poco a poco se va recuperando y un indicador desconocido es testigo de este crecimiento
www.lanacion.com.ar
March 09, 2025
The market is slowly recovering and an unknown indicator is witnessing this growth.
By Maria Jose Lanzi
The reason why properties today sell 7 times faster than a few years ago. Santiago Cichero/AFV
The real estate market is on fire, and several indicators bear witness to this. 2024 closed with nearly 55,000 sales in the city of Buenos Aires, representing a 35% increase compared to 2023, and the best December in 17 years, with 7,667 transactions. Meanwhile, the square meter of listings rose 6.8%, representing the largest increase in the last seven years. Now, another market indicator also bodes well for the sector: the absorption time of the supply of properties for sale.
To put it another way, real estate stock absorption shows how long it might take for what's on offer on the market to be sold. The number is obtained by taking the total property stock (what's listed on a real estate portal in a given month), dividing it by the average number of sales transactions, and then dividing it by 12. Thus, if you take Zonaprop's stock of properties for sale in December (which averaged 103,000 units), divide it by 5,800 (the average number of deeds executed in the last six months of 2024) and divide it by 12, the result is 1.5.
The absorption number of properties for sale results from taking the total stock of properties in a given month, dividing it by the average number of purchase and sale transactions being made, and then dividing it by 12. Shutterstock
In other words, the absorption time for the real estate supply in December 2024 was 1.5 years, seven times lower than the maximum (10.3 years in mid-2020) and "also below the historical average, which is 3 years," says Fabián Achával of the eponymous real estate agency. In other words, in December it took 1.5 years to sell all the properties listed at that time on Zonaprop, while in mid-2020 that number rose to more than 10 years, according to figures from Radar Inmobiliario.
This is a key indicator in the real estate market, as it measures existing demand and the speed at which properties are sold. In this specific case, "it represents a significant improvement because it is slowly approaching the period prior to the boom in UVA loan transactions, when the entire stock was sold in less than a year ," says Achával.
Properties: The absorption time for the real estate supply was 1.5 years in December 2024.Real Estate Radar
Why has real estate absorption time decreased so much today?
The specialist explains the current situation, noting that two factors must be taken into account in the equation: on the one hand, the numerator, which he defines as the property stock. If we analyze what has happened in recent years in this regard, we can see that, since the devaluation of May 2018, when the market became tense and the great real estate crisis began, there was a drop in demand and unsold stock accumulated. This increased the supply of properties from 65,000 at the beginning of the crisis to 165,000 in May/June 2022, which increased the absorption time. However, that supply began to decrease when prices plummeted and bottomed out in 2023, and owners took their properties off the market because they did not want to sell at such low prices, or when the real estate agencies themselves decided to delist many listings, as marketing in the sector increased significantly since the pandemic.On the other hand, there is a factor in the equation that led to the current decline in absorption: there was a sharp increase in demand for property purchases, a result of changing expectations, historically low prices, the increased supply of mortgage loans, and a stable exchange rate. This led to a gradual increase in sales and purchase transactions, reaching almost 55,000 in December. Although monthly growth in the supply of properties for sale was recorded between July and November 2024, the year-over-year downward trend persists. The fact that it has increased slightly monthly recently, even though sales are rising, may be due to the fact that "owners are putting their properties back on the market, seeing the improvement in prices," explains Achával.
Properties: 2024 closed with nearly 55,000 sales transactions in the city of Buenos Aires.Santiago Filipuzzi
The change in expectations is based on the fact that prices remain low. 2024 saw the largest increase in the price per square meter of listing in the last seven years, as no increases of this level have been recorded since 2017 —when UVA mortgage loans were booming in Argentina . However, it is important to keep in mind that, between 2019 and 2023, prices fell by 24%, a percentage that highlights the market's lag, given that listing prices barely recovered by 6.8% last year. In other words, there is still a long way to go to reach 2018 figures.
The reappearance of mortgage loans, through 24 banks, also helped to increase this expectation. This is reflected in sales transactions in Buenos Aires, which increased from 115 mortgage deeds to more than 1,100 in seven months. Looking at the year-over-year figures—taking into account December's figures—this represents an increase of 874.14% compared to the same month last year. "Mortgage loans boosted purchases and generated an acceleration in sales volume, helping to expand demand," shares Martín Boquete, director of Toribio Achával.
The shift in expectations is further evidenced, among other things, by the number of visits recorded on major property listing sites. In January, they reached a total of 19,200,000, representing a 52% increase compared to January 2024, more than double the number, and representing the highest levels in more than four years , according to figures from Daniel Bryn, a broker at Zipcode and Monitor Inmobiliario.
Finally, money laundering is another tool responsible for stirring up the hornets' nest of demand. "It represented another key opportunity for the sector in 2024 and could bring new buyers to the market, especially those looking to invest their formalized savings in real estate," concludes Miguel Ludmer, director of Interwin.
www.buysellba.com
