Finally positive signs from the world of mortgages for home purchases: according to the analysis by Facile.it and Mutui.it, in the first four months of 2024 in Sicily the request for financing increased by 13% compared to the same period in 2023. The average amount requested (+2.6%) and the average value of mortgaged properties (+1%) also started to grow again.
Finally positive signs from the world of mortgages for home purchases: according to the analysis by Facile.it and Mutui.it, in the first four months of 2024 in Sicily the request for financing increased by 13% compared to the same period in 2023. The average amount requested (+2.6%) and the average value of mortgaged properties (+1%) also started to grow again.
«2023 was a complex year for the mortgage market, hit by the increase in interest rates and by less economic availability on the part of families, already struggling with the increase in inflation», explain the experts at Facile .it. «2024, however, started positively, with increasing demand, driven above all by the improvement in the conditions offered by banks for fixed rates, which has generated greater confidence among consumers towards the future.».
The applicant’s profile
Analyzing a sample* of over 19,000 mortgage requests collected online in Sicily, it emerges that those who submitted a loan application in the first 4 months of the year aimed to obtain an average of 113,736 euros, an amount increasing (+2.6%) compared to same period of 2023. The average value of the mortgaged property also increased slightly, reaching 166,992 euros (+1%). The duration of the mortgage drops from just over 24 years to just over 23 and a half years, while the average age of applicants reaches almost 40 and a half years (an increase of half a year compared to 2023).
Limiting the analysis only to mortgage requests for the purchase of a first home, it emerges that the average amount requested in Sicily in the first 4 months of 2024 was equal to 114,201 euros, a slight increase (+1.6%) compared to at the same time last year. The average value of the property remains unchanged, equal to 149,412 euros. However, the average age of the applicant increases slightly (38 years), while the duration of the repayment plan decreases (25 and a half years).
Requests for subrogation are growing, driven by the favorable conditions offered by banks for fixed rates: between January and April 2024 this type of requests represented 21% of the Sicilian total, up by almost 5 percentage points compared to the same period of the year previous.
The provincial trend
Analyzing the mortgage requests collected in Sicily between January and April 2024, some differences emerge at a local level.
Palermo is the Sicilian province where the highest average amount was recorded (121,825 euros), followed by Catania (114,192 euros). Values lower than the regional average for Ragusa (111,014 euros), Trapani (109,321 euros), Messina (109,063 euros), Agrigento (108,008 euros) and Syracuse (106,476 euros). Enna (102,270 euros) and Caltanissetta (98,400 euros) close the ranking.
The offer and rates
On the supply front, Facile.it found that in the first four months of the year the conditions proposed by the banks were overall favorable, in particular for fixed rates, with decreasing indices driven by the decrease in the IRS.
Looking at the best offers** available today for a standard mortgage of 126,000 euros over 25 years (LTV 70%), the fixed rates start from a TAN of 2.87%, i.e. a monthly installment of 589 euros.
Even more advantageous indices for the so-called fixed rate green mortgages (for properties in class A or B): in this case the rates start from a TAN rate of 2.65% with a monthly installment of 574 euros.
The improvement in conditions also affected fixed rates on subrogation: today, those who want to change banks can find offers with TAN indices which, for an average mortgage, start from 3.05% equal to an installment of 600 euros (which drops to 578 euros in case of green subrogation).
However, the offer of variable rates is still off the market: the best rates start from 4.60% and an installment of around 708 euros.
—
* Observatory carried out on a sample of over 19,000 mortgage requests collected online in Sicily by Facile.it and Mutui.it in January-April 2023/2024.
** Simulations carried out on Facile.it on 3 June 2024.
Distribution License:
PUBLICATION INFORMATION
© Do you think this text violates any copyright law or contains abuse of any kind? Contact the manager or
Read how to proceed
