Up or Down?
Is the market going up or down?
The director for Europe of the IMF warns that houses in Portugal are overvalued by 20% and banks should prepare for possible risks related to defaults on mortgages.
He says “In Portugal, interest rates reach borrowers quickly, since 90% of mortgage loans are variable and floating interest rates.
Because of this a high ratio Portugal could be one of the eurozone countries most affected by the sharp rise in rates.
On the other hand the labour market shows to be strong and could limit the impact. Supply is still low and new constructions slow and expensive.
The cost and quality of life remains attractive and some predict international demand will stay strong despite the new measures taken by the government.
So is the market going up or down?
The truth is nobody knows for sure.
We can only rely on the data and monitor the evolution closely.
For know numbers show a deceleration in prices and demand after a heated period.
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Read the article here:
https://www.portugalresident.com/hous...
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