The Bank of Italy’s housing market survey for the second quarter of 2026 found that house price momentum slowed, while agency-brokered sales declined slightly from a year earlier. Housing demand remained subdued and supply continued to contract, although negotiation margins and selling times stayed near survey lows. The average discount from asking prices was 7.1%, and homes took an average of 5.2 months to sell. Credit conditions remained relaxed. Mortgages financed 63.1% of purchases, the average loan-to-value ratio was 78.2%, and 18% of agencies cited credit access difficulties as a main reason for terminated sales mandates, the lowest share since the series began. Rental momentum strengthened from the previous quarter across most of Italy except the North-West, but slowed year on year. Agents remained cautious on the outlook, although the balance of expectations for the national market over the next two years improved to minus 10 percentage points from minus 22.
Bank of Italy2026-08-12
Bank of Italy survey finds house price momentum slowing as housing demand remains subdued
The Bank of Italy’s second-quarter housing survey found slowing house price momentum, subdued demand and a slight year-on-year decline in agency-brokered sales. Credit conditions remained relaxed, while rental momentum strengthened across most regions from the previous quarter. Agents’ outlook improved, particularly over a two-year horizon, but remained cautious.