Property Foreclosures Fell in 2015

Home repossessions fell 13% in 2015
Home repossessions fell 13% in 2015

Following the financial crisis many Spanish mortgage holders defaulted on their mortgage and found their properties being repossessed.

The number of repossessions has since fallen as the market levelled out and 2015 showed a continuation of this trend.

In total, 2015 saw the commencement of foreclosure proceedings on 30,334 primary residences which represents a 13% fall when compared to the previous year, according to data released by the National Statistics Institute.

Q4 – 2015

When looking at the fourth quarter of 2015 the total number of foreclosures registered was 22,540, representing a fall of 16.2% over the previous quarter. This also shows a 27.8% fall when compared to Q4, 2014.

Regular homes accounted for 76.8% of those foreclosures, a huge 23% fewer than in the same period in the previous year. Meanwhile, 2,080 foreclosures were on “second” homes, meaning that the property was not the primary residence of the owner.

Out of all the registered properties in Spain (18,395,100) this suggests a very small proportion, only 0.037%, were affected by foreclosures.

The total number of foreclosures initiated during Q4, 2015, consisted of 14.7% new properties, while the remaining 85.3% represents resale properties. These figures represent falls of 29.1% and 28.1%, respectively.

Many, in fact over half (56%), of the foreclosures are on homes which were mortgaged between 2005 and 2008. 18.5% were mortgaged during 2007, which as we all know is when the market collapsed.

By Community

Andalucia was the community with the highest number of foreclosures registering 5,723 certificates. Valencia followed with 4,011 with Catalonia coming a close third with 3,475. At the other end of the scale, Navarra recorded the fewest foreclosures with only 112 certificates registered, while the Basque Country and La Rioja also showed low figures with 137 and 176, respectively.

When looking at primary residences, Andalucia recorded 3,376 foreclosures with Catalonia and Valencia registering over a third fewer with 2,313 and 2,290, respectively.

Year End – 2015

When looking at the figures for the full year the total number of foreclosure registrations was 101,820 which represents a 15.5% fall when compared to 2014.

Of the total, 30,334 foreclosures were recorded on homes (77.9%). This represents a 13% reduction compared to the previous year. Non-primary residence foreclosures also fell ending the year at 8,609, a fall of 14.4%.

NB: The data provided herein is based on the registration of a certificate of foreclosure but this does not always lead to an eviction/repossession. Legal proceedings and other agreements can change the course of the process.