WHAT TO EXPECT FROM THE 2022 HOUSING MARKET?
With the arrival of the new year and after so many changes in the Brazilian economic scenario. the question arises: after all, what can we expect from the 2022 real estate market? This question is very important for anyone who wants to buy a property and this content will bring more clarity about your opportunities when buying your new home and thus allow a much more assertive planning.
In this post, we are going to share everything that experts expect for the real estate market in the coming year. Read on with us to check it out!
HOW DID THE REAL ESTATE MARKET BEHAVE IN 2021?
The Covid-19 pandemic continued in 2021 and this scenario undoubtedly impacted the country’s economy. However, mass vaccination brought new expectations of improvement and contributed to reducing unemployment and increasing consumption by the population.
for several sectors to register better rates than the previous year, reducing unemployment and increasing population consumption.
The growth of the civil construction sector rudn enclave islamabad and the policies created by the banks to move the Brazilian economy made 2021 the year of real estate financing.
Due to the pandemic, several facilities were created for those who wanted to buy a property. New mortgage lines, reduced interest, financing portability , and even the possibility of pausing installments were some important actions to keep the market warm and encourage real estate investment.
REAL ESTATE FINANCING RECORD IN 2021
A large part of the increase in the contracting of real estate financing in 2021, even in a pandemic scenario, is due to measures created to facilitate payment and mainly to lower interest rates.
This was possible because of the Selic rate, Brazil’s basic interest rate, registered historic rates, starting 2021 at just 2% a year. As the rate has a direct impact on all interest charged in the county’s financial operations, this index made it possible for banks to reduce the rates of their mortgage liens.
To give you an idea, Caixa Econômica Federal, the country’s largest financing agent, released data showing the breaking of records in August 2021: this month alone, the institution registered the contracting of R$14 billion, an increase of 33% compared to the same month of the previous year.
CHECK OUT THE MAIN MEASURES TO FACILITATE REAL ESTATE FINANCING IN THE PANDEMIC SCENARIO
1. CREATION OF THE CREDIT LINE LINKED TO SAVINGS
The modality of real estate financing corrected by savings was highlighted throughout the pandemic. Adopted in 2020 by some banks, such as Caixa, Itaú, and Bradesco, the line brought more attractive interest rates for consumers.
Once again, this is due to the drop in the Selic in 2020, as the savings income is based on the country’s basic interest rate. In practice, the financing line considers a fixed rate defined by the financial institution + income from the savings account.
To find out the yield on savings, you must keep an eye on the Selic: when the Selic is below 9.25% per year (as is the case today), savings yield 70% of the basic interest rate, but when the Selic is above 8.5% per year, savings yield 0.5% per month.
2. POSSIBILITY OF PAUSING INSTALLMENTS
One of the first measures announced by the banks in view of the increase in the country’s unemployment rates, caused by the pandemic, was the possibility of pausing the installments of real estate financing.
The benefit is temporary, but it already brings relief to those who have gotten tighter in recent years. Today, banks such as Itaú, Banco do Brasil and Bradesco rely on the so-called “skip installment”.
The measure allows customers to skip up to two consecutive installments of real estate financing, valid both for those who already have credit operations with institutions and for new contracts. The amount of these installments is normally dissolved in the remaining installments of the loan.
Some banks offer the service completely online, but remember to check your institution’s guidelines for the process and also the rules for skipping your installments.
3. CASA VERDE E AMARELA PROGRAM
Another novelty presented in the midst of the Covid-19 pandemic was the replacement of Minha Casa, Minha Vida by the Casa Verde e Amarela Program . The government’s housing program has always been known for bringing more affordable financing conditions to low-income families, and that remains its objective.
The updated version of the program brings interest rates even more attractive for families with monthly income of up to R$7,000 who wish to acquire their own home. It is possible to find rates from 4.5% per year, bearing in mind that payment terms vary according to the profile of each customer.
In addition to the lower rates, those who finance a property through Casa Verde e Amarela still have benefits such as the possibility of using FGTS, a period of up to 30 years to pay off the financing and government subsidies depending on the profile.
AFTER ALL, WHAT ARE THE EXPECTATIONS FOR THE 2022 REAL ESTATE MARKET?
A big change over 2021, which will likely impact the new year, is the increase in inflation and the Selic rate. The basic interest rate in Brazil is evaluated every 45 days by the Copom (Committee on Monetary Policy of the Central Bank), which decides to maintain the index or update it. Today, the Selic is at 9.25% per year.
As we’ve already explained here, Selic has a direct impact on interest rates on financial transactions, but you don’t need to worry: even with the increase in the base rate, we still have a positive scenario for those who want to buy a property and the trend is for the market real estate stay warm in 2022.
The advice is not to waste time and guarantee your property as soon as possible, in this way, you will take advantage of the low Selic rate and win your new home with reduced interest.
CHECK OUT SOME TRENDS FOR THE 2022 REAL ESTATE MARKET:
1. SEARCH FOR LARGER PROPERTIES
With the pandemic, real estate became much more than a place to live. The houses became a gym, office and family leisure area.
These new ways of using spaces brought a demand for larger properties, a trend that should continue strong in 2022.
2. SEARCH FOR PROPERTIES WITH A LEISURE AREA
Along with the preference for larger properties, there was also the search for condominiums with a leisure area or houses with space to build areas dedicated to fun times.
Among the main items sought, open spaces close to nature are the ones that stand out.
3. DIGITAL PROCESSES
Without the possibility of attending in person in times of pandemic, many real estate companies, builders and even banks have adopted online systems so that the entire process of purchasing property is done in a 100% digital way.
Even with the return of face-to-face service, this new model should remain strong in 2022 due to the practicality provided.
4. SELIC RATE
We talk a lot about the Selic rate, but it is worth emphasizing that it is still at a very good rate for those wishing to buy real estate.
In the past, it has reached more than 14%, which greatly complicated the life of those who wanted to finance a property. So, be sure to take advantage of the lowest rate to make your dream of home ownership come true!
HOW TO PREPARE TO BUY A PROPERTY IN 2022?
Now that you have an idea of the forecasts for the 2022 housing market, we have some tips to help you prepare to buy your new home safely and with peace of mind. Check out:
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MAKE A FINANCIAL PLAN
First of all, the first fundamental step for those who want to buy a property is financial planning and there’s no better time to put the accounts in order than the end of the year, right?
To organize the bills, start by describing your monthly income and expenses, including all fixed costs such as water, internet and energy bills, for example, but not forgetting variable expenses.
The ideal is to get into the habit of writing down your daily expenses, so you can maintain financial organization and reach your goals more easily.
Another important step is to seek to negotiate active debt, if you have any. With this, you can leave your budget more free to invest in your own home. -
COMPARE MORTGAGE LINES
Real estate financing is still the most chosen path by Brazilians when it comes to acquiring their own home and it is also the most affordable, so it is important to know your options. Especially given the current economic scenario, it is essential to compare lines to find the rates that fit your pocket.
To make a complete comparison, it is necessary to analyze not only the interest, but also the CET (Total Effective Cost), an index that indicates the total to be paid for the credit operation, including not only interest, but also administrative fees, insurance, charges and taxes involved in the process.
You can get this and other financing data for comparison purposes from simulation tools provided by banks. If you prefer, go to an agency in person. -
PAY ATTENTION TO SELIC
We’ve already told you here that the Selic is the country’s basic interest rate and directly interferes in the interest rates of financial transactions, including real estate financing. In this context, it is very important to be aware of possible changes in this index, as it may have an impact on the final value of your financing.
It is worth remembering that the Selic rate is revised every 45 days by Copom, and may or may not be changed. You can follow any changes directly on the official website of the Central Bank. -
UNDERSTAND YOUR NEEDS
Having good planning and keeping your feet on the ground are essential steps to conquer a property without stress. So, in addition to organizing your finances, you need to understand what you are looking for in a house and also define how much you can pay for it without compromising your commitment to other essential expenses.
Evaluate the price of properties with the characteristics you are looking for and check the amount available for financing according to your monthly income. Remember that mortgage payments usually cannot exceed 30% of this income.
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