Bank valuations for homes hit a new record: 2,208 euros per metre
The median bank valuation for housing reached an all-time high in May. What it says about the market and about your mortgage.
Another month, another record. The median bank valuation for housing in Portugal reached 2,208 euros per square metre in May, the highest figure ever in this series. In plain terms: what banks reckon a home is worth, for lending purposes, has never been higher.
This valuation is no technical footnote. It sets how much a bank is willing to lend. The higher the valuation, the bigger the possible loan, but also the higher the starting price for anyone trying to buy.
Good and bad news in the same number
For those who already own, the rise is, on paper, a gain in wealth. For would-be buyers, it is one more sign that the stretch keeps growing, with prices running ahead of wages.
The paradox is familiar: prices climb even as Euribor squeezes monthly payments. Strong demand, short supply and construction that cannot keep up keep the market tense, especially in big cities and along the coast.
The question many ask is whether this stalls. The signals are mixed. Some note a slowdown in the number of transactions, without that yet translating into falling prices. In other words, the market may be losing breath without losing altitude.
See also: Home sales are starting to slow and the effect of Euribor on payments. Official statistics at INE.
Image: Berthold Werner / Wikimedia Commons (CC BY-SA 4.0)
