Price of Sold Homes Up 0.7% Due to Market Volatility

According to the General Council of Notaries statistics for August, with regard to housing prices, they noted a “high volatility” in the market due to the reduced number of transactions and considered that, perhaps for this reason, the price per square metre of homes sold in the eighth month of the year recorded growth of 0.7%, reaching 1,219 euros.

This increase was due to the rising price of family homes sold (32.4%) in a month with very few transactions (3,518 units). However, the price of apartments registered a decline of 10.8% year-on-year, to 1,185 euros per square metre, in line with the trend observed in recent months.

New apartments registered a price of 1,424 euros per square metre (-5%) and second-hand, 1,153 euros per square metre (-9.1%).

Spain is about to come out of recession, so have prices hit their lowest level?

El Mundo reported that the number of house sales registered a decline of 28.1% year-on-year in August and totalled 15,027 transactions. The decline has been driven by the 31.4% drop in the number of purchases of apartments and a drop of 14.8% in transactions for family homes. The number of purchases of new apartments fell by 56% in August, year-on-year, while transactions for second hand fell by 19.5%.

In addition, the number of new mortgages contracted in August registered a drop of 33.5% year-on-year. According to the Notaries, the sharp reduction in the number of mortgage loans is due to the decline in the granting of mortgages for the purchase of a property (-34.9%). Specifically, the number of new mortgages granted for house purchases fell by 35.6% year-on-year, and those granted for other real estate transactions dropped by 28.5%.

Moreover, mortgage loans for construction fell by 31.9%. New mortgage loans for building a home dropped by 36.8% year-on-year, while loans for other types of construction fell by 10.4%.

The average mortgage value for the purchase of a property fell by only 0.9%, to 116,162 euros, and in the case of the purchase of a home, the Notaries noted an increase of 0.4% (to 111,790 euros ). Also, the average mortgage value for loans granted for construction purposes fell by 22.3% year-on-year, to 281,504 euros.

Finally, the percentage of homes purchased with mortgage financing stood at 31.8%, and the average percentage of the home purchase price financed was 76.7%.


Article source: