Portuguese Housing Market Survey

“The results from SIR – Residential Information System shows that until October the number of transactions was still stable. Comparing the last three months with the three months before, this system points to a 2% decrease. This change does not reflect the scale of decline in agents’ expectations. Nevertheless, the number of transactions is being pressured both from the demand and supply sides. The former is due to income restrictions, the latter from the relevant fall in the number of houses available to sell. This is consistent with the survey, as the most negative indicator refers to new selling instructions from owners.”

‘‘The Portuguese housing market remains under pressure, with activity falling and price growth losing momentum. Given the troubled economic outlook across much of Europe, it is not surprising that there has been a slowdown in demand amid the continued tightening in monetary policy. Looking ahead, the future profile for inflation will be key in determining how much further rates need to rise which remains difficult to assess at this stage.”