During 2022 the residential real estate market has recorded over 780 thousand trades, 4.7% more than in 2021 for a value equal to 123 billion euros. Approximately 364,000 purchases were made with the taking out of a mortgage, the average value of which was around 138,000 euros. The ECB’s policy had an impact on mortgage rates which increased by an average of 0.63 percentage points over the previous year, thus reaching 2.5%. These are some of the data contained in the Real estate report 2023 elaborated by the OMI Observatory of the Revenue Agency in collaboration with ABI, the Italian Banking Association.
The Real Estate 2023 report is structured in four parts which analyze the evolution of the real estate sector during 2022. The report is in fact divided into four chapters:
- trades
- mortgage loans
- main regional data
- data analysis in the main cities
- locations
- affordability index of Italian families
Residential sales and prices in 2022
2022 ends with strong growth in the residential market, with sales which recorded +4.7% compared to 2021. But if you analyze the data by quarter, it can be seen that the growth in trade, which was very strong in the first two quarters, weakens in the following quarter and returns to negative territory in the fourth quarter, with the provincial capitals more resistant to the downturn.
It is therefore a matter of decisive growth during the year, but which shows signs of weakening for a slowdown in household spending because ofhigh inflation and rising interest rates.
On the price side, the dynamics of the residential market in recent years have not followed that of sales. Average house prices remained broadly stable between 2008 and 2011, when trading volumes were in sharp decline. The decline in prices has occurred since 2012, the year in which the sharpest contraction in trade was recorded, and continued until 2019, despite the fact that the rise in trading volumes began in 2014.
In 2020, while the real estate market was suffering the effects of the economic shock caused by the pandemic health crisis, house prices, which had shown some signs of recovery at the end of 2019, began to grow, strengthening in 2021 and 2022 in parallel with the recovery in trade . Even for house prices, the iWeakening growth characterizes the last 2 quarters of 2022.
The turnover of residential sales
The data relating to the turnover calculated9 for the year 2022 show an overall estimate that amounts to almost 123 billion euros, up compared to 2021 by 3.9%, 4.7 billion euros more. Almost 57% of the turnover regards purchases of houses located in the northern areas, around 70 billion euro; almost 30 billion euros, about 25%, instead refer to homes bought and sold in the Centre, and the remaining 23 billion euros, just under 19%, concerns exchanges of residences in the South and Islands.
Almost 57% of turnover concerns home purchasesi located in Northern areas, around 25%, instead refer to homes bought and sold in the Centre, and just under 19% concern exchanges of homes in the South and Islands. The turnover for housing exchanges is increasing in all areas of the country. On the other hand, compared to 2021, the average value of a house sold decreases by 1,100 euros on the national average. The greatest decline is observed in the Center and in the North East
Mortgage loans for house purchase
During 2022, just over 364,000 homes were sold with the taking out of a mortgage loan. These are levels similar to those recorded in 2021 after the contraction phase of the pandemic period. This is about half of the trades compared to the total trades, in decrease compared to 2022, when it represented 51.15% of purchases.
The total capital financed for the purchase of homes amounts to just over 50 billion euros in 2022, up by 1.2% compared to 2021, in contrast with the decrease of 0.6%.
In 2022, the average capital financed with a mortgage loan it is just over 138 thousand euros, an increase of 2,800 euros compared to 2021. The maximum value of this figure is confirmed in the Center, with an average of 151 thousand euros financed for the purchase of a house (over 171 thousand, in the capital cities); in the Islands the average capital is 117,300 euros (approximately 113,000 in non-capital municipalities).
Average mortgage rate and term
The average rate applied has increased to mortgages by 0.63 percentage points compared to 2.5%, marking an increase after the minimum reached in 2021. The highest rates are recorded in the regions of the SOUTH (2.75%) and the Center (2.59%) while the lowest rates are recorded in the North-East (2.31 %).
As for the loan term increased slightly to 24.8 years. As regards the average installment, it is up by 1.5% and stands at around 623 euros per month. The greatest increase was recorded in the Centre, while a slight decrease was observed in the Islands. The highest value of the installment is found in the Center despite the longer duration of the mortgages.
The locations
In 2022, the number of new lease agreements registered with the Revenue Agency was just over 1.6 million, 1.6% less than last year. These contracts involved almost two million properties. 80% of the total regarded housing rentals, approximately 1,297 thousand.
Real Estate Report 2023
You can download the 2023 Real Estate Report here