The selling prices of homes in mainland Portugal fell by 2,1% in September compared to the previous month, according to the latest results from Confidencial Imobiliário's Residential Price Index released this Tuesday, October 27th.
With the exception of residual negative variations that did not exceed 0,3%, this was also the first chain decline since September 2015, and is also one of the most significant declines in house prices since 2007, and only surpassed by negative variation of 2,2% in May 2011.
In year-on-year terms, housing prices rose 7,9% in September, revealing a slowdown compared to the 11,7% growth seen in the previous month. Thus, the year-on-year growth rate of house prices in September is less than half the beginning of the year, when such appreciation reached 17,4%.
Ricardo Guimarães, Director of Confidencial Imobiliário, says that “the decrease registered now in September will only have a meaning due to the evolution that will be observed in the coming months. In practice, this reduction restores prices to the same level as in March 2020, canceling the growth registered since then ”.
The official therefore considers it “normal to expect prices to fall in the face of the ongoing economic and social crisis. But it is also permissible that, as has happened so far, the market chooses to resist and wait for information on how to resolve the pandemic ”.