Banking evaluation of houses reaches a new peak since 2011
The price per square meter in Portugal is assessed in 1,141 euros, in what is the highest amount since May of 2011. The banking evaluation of houses has been increasing for seven consecutive months.
The price at which banks evaluate the houses when it comes to granting housing credit keeps increasing. In October, the average value of bank appraisals on housing reached a record amount since May of 2011. The path of this indicator follows the upward trend of housing prices in Portugal.
According to data from Statistics Portugal (INE), the average value of bank appraisals on housing reached 1,141 euros per square meter in October. This amount corresponds to an increase of six euros in comparison to the previous month, and it is also the highest amount since May of 2011.
One of the main justifications for the increase of this indicator is the larger availability from banks to grant credit, specifically for buying a house — the successive downward revision in the banks’ spreads illustrates this increase.
The banking evaluation is a very important indicator because it attests the banks’ availability to finance higher amounts in relation to real estate prices. This means that the larger this evaluation is, the more likely are banking clients of having access to a more expensive real estate. In terms of financing amounts granted for purchasing a house, the upward tendency sustains. Almost six billion euros in new loans for that purpose were granted since the beginning of the year, until the end of September.
