In 2023, the prices of new housing have had a strong escalation due to the increase in construction materials, the rise in freight prices and the increase in the minimum wage. In this way, investors seeking a refuge for their capital have found in the used housing an exit.

(Read: What is due to the biggest drop in two years in VIS home sales).

For Karina Reyes, president of Fedelonjas. This can be an effective way out, since the sale price of used housing during 2022 grew by 7.7%.

At the same time, highlight that the sale of used housing presents a lower rate of participation by financial intermediaries, that is, it is bought with less mortgage creditin contrast to those registered in the new one.

«This partially isolates the negative effect of today’s high interest rates and is the result of investors seeking refuge so as not to lose purchasing power, since real estate has proven to be the safest and most stable option over the years»adds the leader of the union that brings together more than 10,500 real estate agents in the country.

(Read: Keep slowing down: home sales fell 61% in March).

According to Dane, in 2022 the value of the disbursements for the acquisition of used housing decreased -30.23% while the new one decreased -19.16%. This is partly explained by the targeting of the allocation of subsidies for the purchase of new housing.

“However, the difficulty of buying a new home is giving used housing more opportunities. On the one hand, families find themselves in the used market for the most beneficial price, more generous areas and more location options. In addition, by offering immediate availability, families have a breather because they do not have to pay fees and rent at the same time, which is one of the greatest difficulties for access to their own roof ”, Adds the president of Fedelonjas.

(Read: My House would already shelter the 52,000 families that it had pending).

Increased demand for rentals, an opportunity

According to Fedelonjas at this beginning of the year the high demand for rental housing is noticeable. For the union leader, this happens due to factors such as the possibility of remote work that has allowed households to return to hometowns such as the metropolitan areas of Barranquilla, Bucaramanga and Medellín.

This increases the rental demand in strata 3 and 4 for rent and, finally, the interest of investors who want to buy because they are looking for rent.

«Because there are homes that take longer to sell, precisely because of the high interest rates, real estate agents are recommending the owner to lease them to receive income while the market stabilizes to receive income and recover with the appreciation it has. the property”, Indicates the president of Fedelonjas.

(Read: The new Mi Casa rules would no longer reactivate home sales.)

In the case of Antioquia, a good moment is reported for the real estate sector since it grew 3.3% so far in 2023 and during 2022, the sale of used housing grew by 1% in sales of used housing. In this region, the appreciation plus profitability was 1.3% per month.

“For the sample of homes that we manage in our MLS software, used home sales have grown by 10% so far this year. Yes, there is a lot of liquidity in the market and people trying to place real estate are looking for income and appreciation, but there is a lack of stock, especially in assets between $300 million and $700 million ”adds.

For real estate experts, the solution is to complete more new homes, since a 25% of the new goes to rent. For example, in Antioquia, while before 2020 some 5,000 units were rented, after 2022 only about 3,000 of the 12,000 delivered.

(Read: Builders would deliver homes with less finishes)

It is important to remember that for every 2 to 3 used homes sold, the purchase of a new home is promoted. «In other words, the housing policy requires a mix of solutions between the used and new market to boost the market that offers a significant number of jobs both in new construction and in remodeling, adaptations and decoration, in the case of the used»recognize the union.

PAULA GALEANO BALAGUERA
Portfolio Journalist