Home Sales Up Prices Down, Say Notaries
21st May 2015
According to the latest real estate statistics published by the General Council of Notaries, the number of home sales transactions in Spain grew by 12.3% during the month of March, while prices fell by 7.5%.
This new drop in house prices has brought the average cost per square metre of housing to 1,202 euros, with the accumulated decline since the maximum values of 2007 amounting to 36.3%.
By housing type, sales of apartments showed a year-on-year increase of 11.3%, mainly due to the increase in sales in the second hand market (+19.8%), while transactions on new builds registered a significant decline (-32.6%). The number of transactions for individual family homes, on the other hand, rose by 16.3%.
The drop in the cost per square metre of housing is due to the decline in both the value of apartments (-6.1%) as well as the depreciation of individual family homes (-10.2%). With regard to apartments, the square metre price of second hand apartments stood at 1,309 euros (-3.7%) while the price for new apartments stood at 1,569 euros (-14.6%).
Sales of other real estate assets in March stood at 8,323 transactions (+6.4%), of which 37.1% were for land or plots. The average price per square metre for these transactions reached 143 euros, which is an increase of 24.4% year-on-year. “Thus, the figures for the sector continue to indicate a stabilisation of the Spanish real estate market”, stressed the Notaries.
Moreover, the statistics show that the mortgage market for the acquisition of housing reflects the stabilisation observed in the real estate sector, registering an overall increase in credit. Thus, the number of new mortgage loans made during the month of March reached a total of 27,219, representing an annual increase of 12.4%, and the average value of these loans was 141,502 euros, reflecting an increase of 12%.
Mortgage loans for the acquisition of a property rose in March by 27.2% year-on-year, mainly due to the increase in the granting of loans for the acquisition of a dwelling, which rose by 27.6%, and the average loan value for the acquisition of a home was 118,587 euros (+0.5%).
At the same time, Diario Sur reported that the mortgage loans earmarked for construction showed growth of 47.2% in March, and reached 445 new loans, with an average value of 243,607 euros. This represents a year-on-year decline of 15.7%, due to both the reduction in the average capital loaned for the construction of housing (-15.7%), as well as the decline in the average amount loaned for the construction of buildings other than housing (-17.7%).
Finally, the percentage of home purchases financed through a mortgage stood at 42.5%, with the amount of the loans standing at an average of 77.7% of the property value.