Now what will happen to the real estate market in Milan after the lock-down from Covid19, there are those who expect everything to continue as before and who predict that there will be a catastrophe ... who is right? Wait because the prices will go up or sell the house immediately to avoid the worst?
To understand what will happen to house prices in Milan we start by observing the world economic scenario because without this vision we would not make an assessment based on objective data but only bar talk. Let's see what is happening to the main indicators of the health of the global economy.
Oil: The price of crude oil from the beginning of 2020 to today has fallen and has made a -33% (I know that you go to fill up and do not pay it with the 33% discount but that's another story ).
Copper: this raw material is a very important indicator because if the orders of the companies are decreasing they buy less and the values fall obviously the opposite is also true. As the copper price changes, it is clear whether the orders of the companies increase or decrease. If demand for copper increases, the economy is doing well.
Oro: It is the safe haven par excellence. When the economy goes badly, gold prices rise.
Stock Exchange: the stock market in January had collapsed in July is stable. This indicator tells us that if the stock market goes up there is a risk appetite for the gold contractor that when prices go up there is fear.
To date, however, these 4 indicators (Oil, Copper, Gold and Stock Exchange) give contradictory signals ... the price of copper rises (trust) and the price of gold rises (fear) ... Low oil price (firm goods) e Stable stock market (indecision). Why is this happening?
Because there is a parallel variable called COVID19 which acts on expectations independently of these 4 indicators.
Now what will happen to the economy of the most industrialized countries? The IMF and OCED institutions expect a drop of between -5% and -7% of the world economy. In Italy they predict a drop of -12.8% (a disaster) but we are not the only ones in very bad shape. France and Great Britain keep us company with a drop in GDP as much as our own ... China with -3%.
But let's go back to Italy, as we well know, mortgage rates are at historic lows, therefore close to + 0.5% interest on a fixed rate mortgage. The money is practically "giving it away" ... Why?
Because in Italy there is no inflation, that is, prices do not grow, rather worse we are in deflation, therefore the prices of consumer goods fall!
Do you know what happens when prices drop? Families continue to postpone the purchase, always waiting for them to go down again ... postpone the purchase of the car, the house and so on. Families wait, wait and still wait to shop, which is why economic crises in Italy last 7 years and not 2 as in other states.
Do you know what the strategies of companies will be to balance the drop in turnover?
To cope with the loss of income, small businesses have only one strategy: lay off people. Large companies in the tertiary sector (in Milan are the majority), thanks to smart working they will reduce office occupancy by 40%.
So fewer people arriving in Milan, less money cashing in bars, restaurants and shops ... fewer people renting houses because if they can work from home 3 days out of 5 they can also do it 200km back and forth.
I turned to elite real estate srl a few years ago and I met Cristina Gambotto and Marco Cassanelli who impressed me for their preparation and punctuality really out of the ordinary. Since then, there has been a professional collaboration that continues and always confirms their extraordinary skills in real estate. Compliments.
Dr. Davide Brancaccio
The thing that hit us most in the management of sales was the absolute precision and seriousness with which Marco and Cristina took care of every aspect of the deal. Read everything
Milano
"I have had the pleasure of knowing Marco Cassanelli and Cristina Gambotto from Elite Immobiliare srl for the sale of my property in Milan, with precision, seriousness, preparation and professionalism ... what to add, the articulated real estate market needs consultants like them! I hope I will be meeting for a new real estate transaction. "
Milano
This is a double evaluation, A direct excellent service employee served, the other performance and organization observer offered. Working experience with many customers allows me to appreciate the ongoing upgrading And the details of the service offered to all customers by Marco Cassanelli and Cristina Gambotto. Dedicated attention to a world and a difficult market and still in a hefty, even prospective crisis.
Milano
Hello Cristina, I take this opportunity to thank you for the professionalism with which you have supported us in this business. I rarely met so much professional preparation, grace and dedication. You helped us to de-activate us in many activities unknown to us, making us feel safe and secure. You really deserve to pick up great successes and hope we can have other opportunities to work together. Anna and Marco Capone
Milano
Cristina and Marco combine their professionalism and competence, also with great sympathy. Over the years, a relationship has been created not only with work, but with esteem and friendship. I believe that in the world of real estate in Milan are among the most transparent and series people. Donatella Maveri
Milano
A complicated negotiation with the seller of the property was handled great by Marco and Cristina. Two industry professionals and two trustworthy people have allowed us to conclude the sale of the best and in the serenity. Francesca and Daniele Pedrotti
Milano
For years we are real estate customers. Not only for the availability of those who advise you, but also for the affection and the true "human commitment" (in addition to the professional one) that people offer you. In this area, it is not often the case to find true and honest people like Cristina Gambotto and Marco Cassanelli, but this is one of those cases. Ettore Bergo
Milano
I met Marco Cassanelli and Cristina Gambotto of Elite Real Estate Ltd in 2012 in relation to my need to have an advice on managing a property. Since the first appointment, unlike other real estate companies, I immediately found an excellent and great professionalism, confidentiality, commitment, punctuality,
Milano
An excellent agency, which in difficult times for the real estate market like these, has been able to find me the right buyer, to the correct figure, for my apartment. Marco Cassanelli and Cristina Gambotto have now been very professional and capable of bureaucracy, where they have provided everything to them, without wasting time and money. Even now if I want advice I turn to them and I cordially receive answers to my doubts.
Milano
For nearly 20 years the partnership with Elite Real Estate has proved to be very valuable and trustworthy, an indispensable element that has accompanied our choices. His team expresses a modern professionalism and expertise rarely found in the industry, which we have experienced. Customized customer attention is never dispersive or dissociated from intuition and relational ability. Isabella and Ubaldo Ferrini
Milano
For a long time, I have been using Elite real estate services since I have found you serious and competent. Good job. Carlo Grillo
Milano
Mrs Cristina helped me to rent my apartment in a very short time, with professionalism and fairness as well as great kindness and sympathy, and assisted me for doubts and questions even after the contract was closed. I am very satisfied with the Élite and I feel I recommend it to those who ask me for a serious and reliable agency.
Francesca Piva
Very professional real estate agency
they took care of selling my house
in Milan ... I highly recommend it!
Thank you
Giorgio Carletti
It's nice to find out along the way to have guessed the best professionals estate.
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It's nice to find out along the way to have guessed the best professionals estate.
When we entrusted the mandate to elite we knew we were in good hands we understood from the approach that have had since the early stages
But the real value, the difference, we have it touched by hand in the final stages of the sale precision, preparation and accuracy they followed everything professionally has confirmed that we are turned to best people.
Giuliano Capedri
CEO of Gioroidea
Elite Immobiliare SrlFulfillment/Realization: justimmobili.it
