As the global economy continues to spiral, Bankinter’s analysis and markets demand department has brought some positive news this week, claiming that housing prices in Spain are likely to drop markedly next year and continue to dip int 2024.
Specifically, housing prices should decline worldwide by 3% in 2023 and another 2% the following year according to market expert Ramon Forcada.
The USA might be the only exception Bankinter believes and although the fall in the Spanish market won’t be dramatic its certainly a change in trend that should be kept ‘very much in mind’ especially given the ‘direct notable’ influence this will have on consumption in general.
However, with no end in sight for the war in Ukraine, the experts predict that the global economy will have to get worse before it gets better. In the end, it’s likely that the markets will bottom out between December 2022 and February 2023 but not before. This means that the market will stabilise and start to improve but will have to finish breaking down before it starts to improve, but it will have to finish breaking down before it starts to recover.’
All of these details have been published in Bankinter’s quarterly strategy report, which forecasts an ‘adjustments process in the face of sticky inflation that is forcing central banks to accelerate and extend rate hikes, which places the Spanish economy in a precarious position for the next several months.
The ongoing war, its experts have stressed will have enormous and far-reaching consequences such as regionalisation, raw material shortages, and other geostrategic challenges. With all that at stake, the likelihood that the issue will be closed in the short term and stop putting pressure on inflation is low, Forcada concluded.
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