Portuguese Housing Market Survey

“Credit restrictions are consistently mentioned by the agents that participate in the survey. They state that often there is an agreement from both seller and buyer, but the deal fails due to the new mortgage regulatory conditions. This is amplified by the perception that sellers’ price expectations have left asking prices incompatible with families’ purchasing power in many cases. In that context, some agents report that several sellers are already reducing their asking prices, aiming to increase the business potential.”

“Although growth across the Portuguese economy seems set to remain solid over the coming quarters, the near term outlook for the housing market now appears relatively stagnant. That said, still healthy macro fundamentals should provide some underpinning going forward.”