Social interest housing: reasons for the drop in sales |  housing |  my finances

After a growth dynamic registered year after year in the sale of Social Interest Housing (VIS) since the subsidy was born My House Alreadydue to a complex macroeconomic panorama, in March, only 5,806 VIS units were sold, one of the lowest figures in the last decade.

In annual terms this would mean, according to Urban Coordinatetool of the Colombian Chamber of Construction (Camacol) that in March the sales of VIS fell 61%. The quarterly data also guaranteed the slowdown, since in the three months 21,728 units, which shows a contraction of 58% compared to the same period in 2022.

(Still slowing down: Home sales fell 61% in March.)

This panorama shows a challenging future in the sector that presented a monthly sales average of 12,500 units between 2019 and 2021, which means that the third month of 2023 is at the level of sales of 2013.

Even, Camacol reports that this drop in VIS housing is unprecedented with the crises that the country has faced in the last decade. In fact, it is selling less than in the crisis subprime (-30%) and Petroleum (-3%); even fewer homes are being marketed than in pandemic (-23.4%), to which is added a drop in sales in regional markets.

(The new Mi Casa Ya rules would not revive home sales.)

We are experiencing an atypical condition, outside the cycle of the last decade, which requires continuing with the actions of the Government and the private sector to encourage a new countercyclical strategy that, by reactivating the sector, is decisive for employment”, said Herrera, who reiterated that it is not a normal response from the market.

By departments, the most affected in this situation is Narinowhich presented a decrease in its sales of 85%, followed in turn by Risaralda with a contraction of 70%, Cease and Bolivar with a fall of 64% and Cordova and Sucre with a decrease of 62%.

Home sales plummeting: The factors that will worsen the decline.

It is worth noting that in 13 regions of the country, the contraction in sales exceeds 50%. The drop in Bogotá was 56%.

Subsidies are not enough

Despite the fact that the economic situation of households is worsening month after month with inflation that does not reach a ceiling, Colombian families that earn less than 4 small have made a financial effort to meet the requirements to purchase their VIS with State resourcestodo.

(Four options to invest in real estate this 2023).

And although for years they planned and did the step by step to obtain the state financial relief of Mi Casa Ya, the sisbenization which now requires the program to be a headache for households that need these resources to write.

This uncertainty about whether or not they are a beneficiary, or of a transition period, opened the door for many of the households with the intention of buying to postpone the decision.

(About 52,000 buyers of social housing, in limbo).

However, those who have already closed financially and had this relief as the last requirement to notarize their home, You must meet the new government requirements to obtain it.

And although the Government will assure that it will shelter this year the 52,000 families By adding budget that these funds need, (23,000 from 2022 or before and 29,000 until March), Camacol is concerned that more families may be affected by the deliveries that are missing in the year.

(Special: high costs altered business strategies).

By July, according to the union, they will join 25,000 families December will be 58,000 more than they will need this subsidy.

Portfolio Journalist