The Buenos Aires Real Estate sales volume has fallen 55% and the mortgage credit is now at the lowest levels in 10 years
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The situation cannot be more different than from a year ago. Whilst in March 2018 the sale of real estate in the city of Buenos Aires was at record levels (6,142 sales were settled) that number deflated by 55.4% to 2,738 operations in the third month of 2019.
Thus, it was at levels similar to those of March 2013, when the exchange rate controls were in force, according to the latest data from the City’s Notary Public School.
The economic recession and the rise in the benchmark interest rates hit the sector, with a collapse in mortgage credit. According to the report, so in March 2019 there were 197 operations with financing, representing a year-on-year fall of 91% (there were 2,220 in March 2018).
According to the data from the Public Notaries, the first quarter of 2019 was the worst in the past 10 years in terms of the number of mortgages granted.
In total, between January and March, there were 588 operations, which reflect a 15% drop compared to the previous worst record (2015), when the market was hit by the adverse exchange rate.
“The figures cannot be a novelty in a context in which asking prices quoted in USD barely declined year-on-year in the face of a devaluation of more than 100% that now leaves no chance for buyers to qualify for a mortgage.
In this context, the real estate market seems to have reached a new equilibrium. Unless vendors start meeting the market it will remain frozen.
In May of 2018, there were 5,897 deeds and the average value for the dollar was 23.20 pesos. In June 2018, there were 4,592 deeds and the dollar was quoted at 27.25 pesos. However, in March 2019 it collapsed to 2,738 operations with the dollar at 42.54 pesos.