The public guarantee for young people under 35 years old buying their first home has contributed to the surge in housing prices. This warning was issued this week by the credit rating agency DBRS.
However, the measure helps reduce generational inequalities in home buying, according to SIC Notícias, reflecting the conclusions of DBRS.
The rating agency, albeit at a slower pace, supported by factors like interest rate reductions, lack of new constructions, and demand from foreign buyers.
According to an analysis by DBRS, released this month, the real estate market will be supported by factors such as the resilience of the economy (despite the uncertain impact of U.S. trade policies), low unemployment, gradual reduction of interest rates, as well as the imbalance between supply and demand, also related to the lack of new construction and foreign demand.
Thus, DBRS anticipates, “the trend of sustained housing price increases is expected to continue into 2025, although at a slower rate than in 2024.”
For DBRS, this represents a “challenge” for first-time homebuyers and considers that the government’s measures for the housing market are relatively limited, as it will take time to determine their effectiveness.
Regarding the housing loans granted by banks, following a slowdown in 2023 due to rising interest rates, DBRS notes they have been recovering and expects this trend to continue in line with the decline in interest rates.
