For several decades, residential real estate prices have continued to rise in Europe and Belgium. In the 1980s-2000s, this growth was very strong as it was around 10% annually. Furthermore, this growth was coupled with inflation that was nearly 7 to 8% per year. Since 2005, we have observed a clear flattening of the curve of real estate price evolution and even a decrease in prices in the first quarter of 2014.
Moreover, inflation remains very low in Europe, around 2% per year, and interest rates are also very low. All conditions are therefore met to consider that we are experiencing a favorable time to consider a real estate purchase and a credit Belgium.
All the technical explanations summarized in a few key ideas in our article.
The housing price index is falling in Europe and Belgium
The housing price index measures inflation in the private property market. This index tracks price changes of new or existing residential properties purchased by households, regardless of the purpose (rental or personal occupation).
The Belgian housing price index fell by 1.6% in the first quarter of 2014 compared to the previous quarter. The annual inflation rate stands at -1.1%. The average inflation was 1.2% in 2013.
The housing price index for the eurozone and the European Union for the first quarter of 2014 will be published by Eurostat on July 10, 2014. In 2013, the average annual inflation rate reached -1.9% in the eurozone and -0.9% in the European Union. More information on the housing price index
Evolution of real estate prices in Belgium
By analyzing the evolution of price curves of houses, apartments, and villas in Belgium, we observe a very marked flattening of the curve since 2010.
It seems that the era of constant real estate price increases is behind us.
This is good news for prospective buyers – borrowers.
On the other hand, investors may need to start reviewing their strategy if they want to keep in mind that the evolution curves of charges continue to rise. Real estate remains an investment that generates a net capital gain but much less significant than in the past.
Evolution of interest rates
The level of mortgage rates is actually linked to the bond rates in force on the financial markets, which vary daily. When bond rates fall, mortgage rates also fall, with credit institutions simply following the market.
In simple terms, we can quickly explain how bond rates evolve: in general, they move in the same direction as the stock markets.
In recent years and following financial crises, investors have opted for more secure financial products such as bonds. As a result, their yields have fallen sharply, as have interest rates.
We are experiencing a period where interest rates are historically low: at Crédit Populaire Eurpéen, we are able to guarantee you a rate of 3.5% over a period of 20 years (fixed rate).
Use our fee simulators
When you make a real estate purchase, you should not overlook the ancillary fees that are added to the purchase price. These fees are essentially of two types.
- Credit deed fees: everything you need to know and our fee calculation simulator here
- Sales deed fees: everything you need to know and our sales fee calculation simulator here
Our simulators allow you to have a very precise overview of the fees that will affect your purchase: it is a very practical tool.
Our mortgage credit specialist
Mrs. Jacqueline Legrand will be your personal advisor in your purchase: Jacqueline has been managing mortgage credits for over 30 years, she is essential in this market and is your guarantee to find the most suitable interest rate and loan formula for your request.
Contact: Mrs. Jacqueline Legrand: phone: 04/387.73.78 – Mobile: 0486/77.66.97
Visit our website: www.cpe-credit.com