According to INE data, the sale of homes in Spain shot up 40.6% in the month of September compared to the same period of the previous year. If we talk about absolute values, Madrid It was the fourth region with the highest number of housing operations (7,701). For its part, the third quarter of 2021 marked historical figures for the sale of homes in Barcelonaincreasing about 57%.
In this context, the proptech Casavo analyzed how the experience of selling a property in Madrid and Barcelona changed last year, through its latest report “Sell a house in 2021”, focused on Madrid and Barcelona.
New needs and reactivation of demand
After the pandemic, Spanish households have changed the way they live and, consequently, the type of home they need. Thus, the report concludes that 55% of the people from Madrid surveyed acknowledged selling their house to buy a new one. In addition, of them, 3 out of 10 stated that they were in the process of selling their main home, and 34% said that their main motivation lies in finding a “more appropriate” place to live.
“The motivations of the users for the sale of their house are very varied, as is the case of looking for a better location or benefits. However, in Madrid we observe with special interest the ‘Covid effect’, since more than 2 out of 10 respondents (25%) stated sell an inherited homesomething that is probably motivated by the repeal of article 28 of the Mortgage Law, favoring the growth of the real estate market in the Community”explains Francisco Sierra, General Director of Casavo in Spain.
This paradigm shift has driven the reactivation of demand which, together with the exceptional conditions of mortgage loans, moderate inflation and the maintenance of the CPI at relatively stable levels, have contributed to generating a more than favorable context for the growth of the sector. . In line with the figures from the National Institute of Statistics, which include how the price of housing increased, between April and June, only 2.4% compared to the same quarter of 2020, without yet recovering the prices prior to the crisis caused by COVID-19, we can affirm that the nature of “safe haven value” is another of the factors decisive reasons why investors and individuals turn to housing as an investment.
The traditional model: long waiting times and uncertain prices
According to the survey carried out, only 42% of people who put a flat up for sale have a realistic expectation of the market value of their home, so it is not surprising that in 71% of cases, sellers are forced to make a discount of 9% of average on the initial price of sale to be able to close the agreement.
If we talk about the timeouts, It is important to note that in Madrid it takes an average of 5 months from when a property is put up for sale until its sale is deeded. A time that seems eternal for those who need liquidity, perhaps to buy a new house. If we also take into account that in half of the sales the times are longer than expected, it is not surprising that the traditional sales model implies high levels of stress and uncertainty for individuals. In contrast to this, Casavo speeds up the process, managing to buy homes in just 7 days.
One of the main conclusions of the report is that, in this context, the need to transform the sector is becoming more and more imperative. To do this, the technology is positioned as a key link to respond to the new needs of buyers and sellers.
When we think of putting a home up for sale, we always question whether the best option is to go to a real estate operator or carry out the process on our own. The data confirms in this regard that 86% of vendors ends up resorting to real estate operators and that the balance is leaning, more and more, towards digital operators that are already chosen by 42% of users. Whether the sale is made on their own account or through the intermediation of a real estate operator, what seems evident is the use of digital channels to advertise the home, thus, 81% of the operators opt for platforms and internet pages, a solution by which is also chosen by 77% of sellers who decide to manage the sale on their own.
However, the visit to the property is undoubtedly the stage of the sales process that has undergone the greatest transformation thanks to technology. Although until a few years ago it might have been unthinkable, the data reveals that practically half of the sellers (47%) made digital and remote visits with potential buyers.