With shortages of houses on the market and low interest rates, the end of the year could be a good time to sell a home. But there are some things to consider before deciding to sell during a pandemic, according to the experts.
Several specialists shared their insights in an article by Portuguese newspaper Expresso, and for property-owners thinking of selling, there are some circumstances you should assess before taking the leap:
- What is the first step?
Ask yourself: How urgently do I have to sell? Will it be worthwhile? Am I prepared to sell the property for its market value?
- Are there alternatives?
Given the lack of properties targeted at the middle class, both to buy and rent, it may be more profitable to place the property on the rental market rather than sell.
- Will prices drop?
Despite the crisis, the property market has shown resilience. “While there will be some corrections, there will not be a devaluation,” says Luís Lima, president of APEMIP (Association of Real Estate Professionals and Companies in Portugal).
- Should you wait to sell?
According to Ricardo Guimarães, director of Confidencial Imobiliário, those who do not need to sell shouldn’t do so. “The market will not see a sharp decline (…) and the property market will recover faster than the economic market in general.”
- Is it a good time to sell?
If you don’t want to wait, then yes, now is a good time to sell. Specialising in consultancy and credit brokerage, Guida Sousa, national coordinating director of Decisões e Soluções, explains: “There was no drop in buying and selling prices during the pandemic. For now, mortgage loans remain very good – there are spreads under 1%.”
- What will 2021 bring?
There will be an increase in supply of new properties as of April, says Guida Sousa, and therefore a shift in demand that will reflect in property prices. In terms of credit, there should be more restrictions in the second half of the year.
For Luís Lima, president of APEMIP, the best advice is to turn to a real estate agency, such as Algarve Home Sales, to assess the different options. Contact us here for expert advice.
