Home Sales: Optimism in Panama

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Home Sales: Optimism in Panama

After the Preferential Interest Act was modified and the maximum limit for applying preferential interest to the purchase of homes was raised to $180,000, an 11% decrease in the inventory of available homes was reported.

Monday, February 3, 2020

In September 2019, a bill was approved which establishes that for the purchase of homes for a value of between $120,000 and $150,000, the government will assume 2% of the bank interest, and in the case of properties that are between $150,000 and $180,000, the exoneration will be 1.5%.

This change has boosted sales in the Panamanian real estate market, since the available inventory of homes has dropped from 3,600 to 3,200 and in addition there has been an 18% increase in mortgage approvals.

You may be interested in "Real Estate Supply: How do Prices Behave?"

Data from the Superintendence of Banks of Panama (SBP) detail that up to November 2019, the amount of homes sold under the Preferential Law was $6,109 million, a figure that exceeds by 18% the $5,151 million registered in the same month of 2018.

Luis Pimentel, president of the Panamanian Association of Realtors and Developers (Acobir), told Panamaamerica.com.pa that they are "... on the right track so that in the next two years we finish with the existing inventories. We must strengthen the alliance with the government to achieve economic recovery."

Source: Panamaamerica.com.pa

 

https://www.centralamericadata.com/en/article/main/Home_Sales_Optimism_in_Panama