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Mortgage frenzy: deeds with credit quadrupled in September, a record since the UVA boom - Infobae
Source:
www.infobae.com
October 24, 2024
This was confirmed by the survey of deeds by the College of Notaries of CABA. Of the 5,157 operations, 705 were carried out with mortgage loans. It is a growing trend. We are still far from the peak of 2018.
By Jose Luis Cieri
Month after month, real estate transactions in CABA are growing and mortgage loans are gaining ground among home sales (Illustrative Image Infobae)
The number of deeds of sale of real estate in the city of Buenos Aires reached 5,157 notarized records in September, which represents an increase of 30.4% compared to the same month of the previous year. This increase is accompanied by a growth in the total amount of transactions, which amounted to $484,692 million, 232.7% more than in September of last year.
Of these 5,157 registered transactions, 705 (13.67% of the total) were carried out with mortgage loans, a record since the UVA craze that occurred between 2016 and 2018.
The mortgage market is showing significant dynamism , confirmed by the mortgage deeds executed in September, which grew by 317.2% compared to the same month last year and have accumulated an increase of 74.3% so far this year, with a total of 1,970 mortgage deeds executed in the period.
The report, which focuses on transactions carried out by notaries in the Argentine capital, also revealed that the average amount of the deeds was $93,987,235, equivalent to USD 94,278 according to the average official exchange rate.
This average value shows an increase of 155.1% in pesos compared to the previous year, although in dollars it shows a decrease of 6.1 percent.
The president of the College of Notaries, Jorge De Bártolo , highlighted to Infobae that “it is a month that reflects the year-on-year increase: 30% compared to September 2023 and 30% in the consolidated 9 months compared to last year.”
Source: College of Notaries of the City of Buenos Aires
One of the main drivers of this improvement is the stabilization of the dollar, which provides predictability to buyers and reduces uncertainty when closing a deal. In addition, the need to secure a family roof remains a priority, which drives many people to invest in a property. The possibility of accessing mortgage loans also began to influence the market, generating expectations that prices, which had fallen before and after the pandemic, will begin to adjust upwards.
De Bártolo explained that the resurgence of mortgage credit is a key factor in this recovery. “As inflation decreases, interest in UVA loans will grow, since these loans allow more people to access their own home instead of renting. The repeal of the Rental Law boosted the cost of rent, making it more attractive to opt for a mortgage payment, which in the long term offers security and ownership.”
Compared to 2017, when between 1,000 and 1,200 mortgage loans were granted per month, current figures show an incipient recovery.
De Bartolo highlighted: “This 500% growth in just three months indicates that the mortgage market is gaining strength again, although it is still far from the peak of more than 2,300 mortgages reached in 2018.”
Source: College of Notaries of the City of Buenos Aires
Money laundering is another factor that could contribute to the recovery of the real estate market in the last quarter of 2024.
In addition, the mortgage market in Argentina has shown significant growth in the last three months, driven by various economic factors.
Iván Ginevra , president of the Argentine Real Estate Chamber, explained: “This growth is due to the increase in the number of mortgages and the expectation of an improvement in the country's macroeconomic situation. Although we are seeing a 30% increase compared to the same month last year, we expect the trend to continue. People are investing their savings in the real estate sector, trusting in economic growth and the stability of the country.”
Source: College of Notaries of the City of Buenos Aires
This dynamic not only benefits the real estate market, but also the economy in general, by providing greater confidence among investors.
Banks have launched new campaigns to promote these loans, and demand is responding positively.
This caused prices per square meter to begin to adjust upwards, after a period of decline. UVA credits, which had fallen into disuse, are beginning to be a viable option again for those looking to finance their first home.
“The trend will continue as the country stabilises and the economy grows. As mortgage lending increases, we will continue to see this upward trend in deeds. In fact, the current numbers are the highest in the last 10 years, and if the context continues to improve, we could see sustained growth in the coming months,” concluded Ginevra.
www.buysllba.com
Source:
Furor de las hipotecas: las escrituras con crédito se cuadruplicaron en septiembre, un récord desde el auge de los UVA
Así lo confirmó el relevamiento de escrituras del Colegio de Escribanos de CABA. De las 5.157 operaciones, 705 se realizaron con créditos hipotecarios. Es una tendencia creciente. Todavía se está lejos del pico de 2018
www.infobae.com
October 24, 2024
This was confirmed by the survey of deeds by the College of Notaries of CABA. Of the 5,157 operations, 705 were carried out with mortgage loans. It is a growing trend. We are still far from the peak of 2018.
By Jose Luis Cieri
Month after month, real estate transactions in CABA are growing and mortgage loans are gaining ground among home sales (Illustrative Image Infobae)
The number of deeds of sale of real estate in the city of Buenos Aires reached 5,157 notarized records in September, which represents an increase of 30.4% compared to the same month of the previous year. This increase is accompanied by a growth in the total amount of transactions, which amounted to $484,692 million, 232.7% more than in September of last year.
Of these 5,157 registered transactions, 705 (13.67% of the total) were carried out with mortgage loans, a record since the UVA craze that occurred between 2016 and 2018.
The mortgage market is showing significant dynamism , confirmed by the mortgage deeds executed in September, which grew by 317.2% compared to the same month last year and have accumulated an increase of 74.3% so far this year, with a total of 1,970 mortgage deeds executed in the period.
The report, which focuses on transactions carried out by notaries in the Argentine capital, also revealed that the average amount of the deeds was $93,987,235, equivalent to USD 94,278 according to the average official exchange rate.
This average value shows an increase of 155.1% in pesos compared to the previous year, although in dollars it shows a decrease of 6.1 percent.
The president of the College of Notaries, Jorge De Bártolo , highlighted to Infobae that “it is a month that reflects the year-on-year increase: 30% compared to September 2023 and 30% in the consolidated 9 months compared to last year.”
Improvement
The recovery of the real estate market in CABA has been strengthened in recent months, driven by various factors, despite economic challenges.
Source: College of Notaries of the City of Buenos Aires
One of the main drivers of this improvement is the stabilization of the dollar, which provides predictability to buyers and reduces uncertainty when closing a deal. In addition, the need to secure a family roof remains a priority, which drives many people to invest in a property. The possibility of accessing mortgage loans also began to influence the market, generating expectations that prices, which had fallen before and after the pandemic, will begin to adjust upwards.
De Bártolo explained that the resurgence of mortgage credit is a key factor in this recovery. “As inflation decreases, interest in UVA loans will grow, since these loans allow more people to access their own home instead of renting. The repeal of the Rental Law boosted the cost of rent, making it more attractive to opt for a mortgage payment, which in the long term offers security and ownership.”
Compared to 2017, when between 1,000 and 1,200 mortgage loans were granted per month, current figures show an incipient recovery.
De Bartolo highlighted: “This 500% growth in just three months indicates that the mortgage market is gaining strength again, although it is still far from the peak of more than 2,300 mortgages reached in 2018.”
Source: College of Notaries of the City of Buenos Aires
Money laundering is another factor that could contribute to the recovery of the real estate market in the last quarter of 2024.
Sector expectations
Whether it was those who sold a home to buy another, investors or people with genuine savings, these actors drove the real estate market and left behind the bad times of three or four years ago, when only around 1,500 deeds were carried out per month.In addition, the mortgage market in Argentina has shown significant growth in the last three months, driven by various economic factors.
Iván Ginevra , president of the Argentine Real Estate Chamber, explained: “This growth is due to the increase in the number of mortgages and the expectation of an improvement in the country's macroeconomic situation. Although we are seeing a 30% increase compared to the same month last year, we expect the trend to continue. People are investing their savings in the real estate sector, trusting in economic growth and the stability of the country.”
Source: College of Notaries of the City of Buenos Aires
This dynamic not only benefits the real estate market, but also the economy in general, by providing greater confidence among investors.
Banks have launched new campaigns to promote these loans, and demand is responding positively.
This caused prices per square meter to begin to adjust upwards, after a period of decline. UVA credits, which had fallen into disuse, are beginning to be a viable option again for those looking to finance their first home.
“The trend will continue as the country stabilises and the economy grows. As mortgage lending increases, we will continue to see this upward trend in deeds. In fact, the current numbers are the highest in the last 10 years, and if the context continues to improve, we could see sustained growth in the coming months,” concluded Ginevra.
www.buysllba.com
