Nomisma, from Trieste to Messina the high rates slow down home purchases: -10% in 2023


By John

«The Italian real estate market is showing signs of further weakening. The progressive increase in interest rates, combined with the newfound selectivity of the banking class, have abruptly interrupted a mechanism that seemed destined to constantly increase even the most fragile aspirations”.

This is what emerges in the Nomisma real estate market observatory which analyzes the sector's situation with a focus on 13 intermediate markets (Ancona, Bergamo, Brescia, Livorno, Messina, Modena, Novara, Parma, Perugia, Salerno Taranto, Trieste and Verona) .

According to Nomisma, the credit component will act as a metronome for the market's recovery. The high cost of money meant that the share of mortgage-backed sales fell from 48.4% in 2022 to 39.9% of total purchases in 2023.

The difficulties in accessing the buying and selling market have favored a potential shift in interest in demand towards renting, which has grown by 3 percentage points compared to last year.

In other words, in 2023, 48 thousand households gave up buying a home in favor of renting. In 2023, sales suffered a decline of close to 10% with almost 710 thousand total homes changing hands on the market. According to Nomisma, the decline in sales recorded in 2023 is attributable exclusively to the demand component that left the market because it was dependent on credit (-26%), while purchases without a mortgage continue to grow (+4.8%).