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Real estate market in haywire, sales collapse in Italy

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Real estate market in haywire, sales collapse in Italy

Italians no longer have money to buy houses, sales in Italy are collapsing

For several months the media have focused on the real estate marketpartly because the Chinese giant Evergrande is in serious difficulty, partly because property sale announcements are also growing in the USA, even if prices seem stable for the moment, partly because to all this is added an imminent default in Europe: that of the Signawhich is part of the real estate empire of René Bankoand who has recently requested insolvency proceedings at the Court of Vienna (Austrian law).

Even in Italy we are witnessing this decline, more accentuated in the north and central Italy compared to the south and ultimately thanks a little to the increase in interest rates of the main ones Central Banks. What does all this generate? Good question.

Il real estate marketlike all markets, suffers from ups and downs (law of supply and demand), the problem is that when a decline occurs in this sector not only the companies or individual owners are involved, but the entire industry is affected (for Italy we also add the 110% remodulation).

Furthermore, they are directly involved banks e real estate funds who have lent or invested large sums in the real estate market with the consequence that perhaps their credit is becoming NPL (Non-Performing Loans) and simultaneously developing the credit crunch (when loans are difficult to obtain). Now, take a look at this graph:

The first signs begin as early as 2020. The other graph also contains the forecast for the next two years:

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The decrease is equal to 21.19% and is not a low number. Another signal is the availability of properties for rentbut with prices continuing to rise, the figure seems justified by the previous ignition of mortgages to pay for the property and which should be tidied up today. I close this brief excursus by evaluating that if the real estate marketin its entirety, in perspective the forecasts are anything but rosy.

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