Average mortgage value down 7.2% in May

Average mortgage value down 7.2%

The National Institute of Statistics has released figures showing a fall of 7.2% in the average value of mortgages constituted in May, compared to the same time in 2011.

The average mortgage value in May was 112,320€, a figure 7.2% lower than the same month the previous year and 1.8% lower than that recorded in April 2012.

In the case of mortgages constituted for dwellings, the average amount was 101,168 euros, 7.5% less than in May 2011, and 1.5% higher than that registered in April 2012.

The value of the mortgages constituted on urban properties was 4,550 million euros in May, indicating an interannual decrease of 33.5%. In dwellings, the capital loaned exceeded 2,631 million euros, 35.8% less.

Mortgages by institution

Banks were the institutions that granted the largest number of mortgage loans in May (73.8% of the total), followed by Savings Banks (10.2%) and Other financial institutions (16.0%).

Regarding the capital loaned, Banks granted 71.5% of the total, Savings Banks 10.8%, and Other financial institutions 17.7%.

Mortgage interest rates

The average interest rate in May 2012 was 4.32%, indicating a 5.9% increase in the interannual rate, and a 1.4% decrease as compared with April 2012.

By institution, the average interest rate of Savings Bank mortgage loans was 4.36%, and the average term was 23 years. Regarding Banks, the average interest rate for mortgage loans was 4.47%, and the average term was 20 years.

94.4% of the mortgages constituted in May used a variable interest rate, as opposed to the 5.6% that used a fixed rate. Within the variables, the Euribor was the reference interest rate most used in constituting mortgages, specifically in 85.3% of new contracts.

Mortgages with registration changes

In May, the total number of mortgages with changes in their conditions recorded in the land registries stood at 32,819, with an interannual increase of 5.8%. For housing, the number of mortgages with modified conditions increased 7.8%.

Considering the type of modification of the conditions, in May 28,158 novations (or modifications produced within the same financial institution) were produced, for an interannual increase of 8.0%. The number of transactions that changed institutions (subrogations creditor) was 3,331, that is 4.1% less, as compared with May 2011. In turn, 1,330 mortgages changed the holder of the mortgaged property (subrogations debtor), which implied an interannual decrease of 10.6%.

Number of mortgages with changes in interest rate conditions

Of the 32,819 mortgages with changes in their conditions recorded in the land registries in May, 37.3% were due to changes in interest rates.

The percentage of mortgages at a fixed interest rate decreased after the change in conditions (from 3.3% to 2.3% of the total), since most of these loans were referenced to a variable interest rate. Within the interest rate structure, the Euribor was the main reference. The lowest average interest before and after the change was that corresponding to Other interest rates.

After the modification of conditions, the average interest of the loans increased 1.09 points in fixed interest rate mortgages, and decreased 0.16 points in variable interest rate mortgages.

Registered mortgage cancellations

In May, 39,788 mortgage cancellations were registered, 9.1% less than in the same month of 2011. Mortgages cancelled on rustic properties decreased 11.5%, whilst those cancelled on urban properties decreased 9.0%. Cancellations of mortgages on dwellings decreased 10.1% in the interannual rate.

Download complete report from INE: Mortgage Statistics – May 2012

1,744 companies dissolved in May

More companies closed their doors in May

The National Institute of Statistics (INE) has released figures showing the number of companies dissolved in May increased by 20.6% on a year-on-year basis.

The number of mercantile companies created in May decreased0.9%  compared to the same month of 2011.

8,031 mercantile companies were created in May, 0.9% less than in the same month of 2011, and 17.4% more than in April 2012. The capital subscribed for their constitution exceeded 398 million euros, representing an increase of 32.0% as compared with May of the previous year. The average capital subscribed (49,594 euros) registered an interannual increase of 33.2%.

On the other hand, 2,977 mercantile companies increased their capital in May, 15.4% less than in the same month of 2011. The capital subscribed in the increases registered an interannual decrease of 65.4%, and exceeded 2,669 million euros. The average capital subscribed in these transactions (896,619 euros) decreased 59.1%.

The number of companies dissolved in May was 1,744, indicating an interannual increase of 20.6%. Of these, 66.0% did so voluntarily, 5.0% due to mergers and the remaining 29.0% for other reasons.

Results by main economic activity and type of society

22.8% of the mercantile companies created in the month of May corresponded to Trade and 20.0% to Construction and property development.

Out of the total mercantile companies created in the month of May, 99.4% were private limited companies and 0.6% were public limited companies. Out of the total companies that increased their capital, 91.9% were private limited companies and 8.1% were public limited companies.

80.3% of the capital registered by the mercantile companies created was subscribed by private limited companies, and 19.7% by public limited companies. Regarding the capital subscribed in capital increases, 74.6% corresponded to private limited companies, and 25.4% to public limited companies.

The interannual rate of the number of public limited companies created in May decreased 2.1% and the rate for private limited companies 0.9%.

Considering the companies that increased their capital, the number of public limited companies registered an interannual decrease of 24.8%, and the rate for private limited companies 14.3%.

The capital subscribed by the public limited companies created decreased 62.7% and 26.1% in private limited companies. As per the capital subscribed by the companies increasing their capital, the interannual rate for public limited companies registered a decrease of 86.5 %, and a decrease of 25.7% in private limited companies.

You can read the full report here: Mercantile Companies Statistics – May 2012

Property sales volume down 3.8% in May

Sales figures still falling

The number of property sales in May 2012 was down 3.8% compared to the same month of the previous year. On a year-on-year basis the number fell by 11.6%.

This is according to figures released by the National Institute of Statistics.

The number of property transfers recorded in the land registries, from public deeds previously registered, was 141,719 in May, that is, 3.8% less than for the same month in 2011, and 21.1% higher than in April 2012.

In the case of registered merchantings of property, the number of transfers was 60,003, representing an interannual decrease of 11.6%, and a decrease of 22.9%, as compared with the previous month.

Merchantings recorded in the land registries

84.6% of the registered merchantings corresponded to urban properties and 15.4% to rustic properties. Among the urban properties, 53.7% were merchantings of dwellings.

The number of merchantings of rustic properties decreased 1.8% in the interannual rate in May, while that of urban properties decreased 13.2%. Within the latter, merchantings of dwellings decreased 11.6%.

Registered merchantings of dwellings, by protection system and status

89.5% of transfers of dwellings by merchanting in May were free housing, and 10.5% were protected housing. In interannual terms, the number of transfers of free dwellings by merchanting decreased 8.4% and that of protected dwellings decreased 31.5%.

48.0% of the dwellings transferred by merchanting in May were new, and 52.0% were used. The number of transactions on new dwellings decreased 10.3%, and the number of used dwellings decreased 12.7%, as compared with May 2011.

Geographical distribution

In May 2012, the total number of property transfers recorded in the land registries per 100,000 inhabitants¹ was highest in the Autonomous Communities of Castilla y Leon (664) and Aragón (601).

The Autonomous Communities showing the highest number of registered merchantings of property per 100,000 inhabitants¹ were Castilla-La Mancha and La Rioja (both with 235).

By registered merchantings of dwellings, the Autonomous Communities in which the number of transfers per 100,000 inhabitants¹ was highest were Comunitat Valenciana (103) and Andalucía (90).

62.1% of merchantings of dwellings in May 2012 were recorded in four Autonomous Communities: Andalucía, Comunitat Valenciana, Cataluña and Comunidad de Madrid.

You can download the press release here: Statistics on Transfer of Property Rights – May 2012

¹ This data was calculated from the revision of the figures of the Municipal Register for the year 2011. Only the population aged 18 to 84 years old was considered.

Euro area unemployment rate at 11.1%

Not good news for the unemployed

Unemployment in the Euro zone stood at 11.1% in May, a rise of 0.1% from April and up by 1.1% compared to the same month in 2011.

The figure across all 27 members of the EU was at 10.3% in May, up 0.1% compared to April 2012 and up from 9.5% in the same month last year.

This is according to figures released by statistics agency Eurostat who estimate that 24,868 million men and women in the EU27, of whom 17,561 million were in the euro area, were unemployed in May 2012.

Comparing to April this year, the number of unemployed people increased by 151,000 in the EU27 and by 88,000 in the Euro zone. Comparing to May in the previous year unemployment rose by 1,952 million in the EU27 and by 1,820 million in the Euro zone.

The lowest unemployment figures were recorded by Austria (4.1%), the Netherlands (5.1%), Luxembourg (5.4%) and Germany with 5.6% unemployment. The highest, unsurprisingly, was Spain with 24.6%, followed by Greece where unemployment in March stood at 21.9%.

Comparing to May 2011, unemployment fell in eight member states, increased in 18, while remaining stable in Hungary. The largest fall recorded was in Estonia where the figure fell from 13.6% to 10.9%. In Lithuania a fall of two points from 15.7% to 13.7% was recorded. The highest increases were recorded in Greece and Spain jumping from 15.7% to 21.9% and 20.9% to 24.6% respectively. In Cyprus, the latest country to ask for help, the figure increased from 7.5% to 10.8%.

By Sex

The rate of unemployment between the sexes remains similar across Europe. In the Euro zone the rate for males increased from 9.8% to 10.9%. Across the EU27 the rate increased from 9.5% to 10.3%. For females the rate in the Euro zone increased from 10.3% to 11.3% while in the EU27 the rate increased from 9.6% to 10.4%.

Youth Unemployment

The picture for young people (under 25) continues to be bleak with higher overall figures.

In May 2012 there were 5.517 million young persons claiming unemployment in the EU27, of whom 3.412 million were in the Euro zone. Compared to May 2011, the number of young people out of work increased by 282,000 in the EU27 and by 245,000 in the Euro zone. In may of this year youth unemployment was at 22.7% in the EU27 and at 22.6% in the Euro zone, compared to the previous year when the figures were 21.0% and 20.5% respectively

The lowest rates of youth unemployment were recorded in Germany (7.9%), Austria (8.3%) and the Netherlands (9.2%), and the highest was in Greece (52.1% in March 2012) and Spain (52.1%).

You can see the full report from Eurostat here: Euro area unemployment rate at 11.1%

Hotel stays up 0.4% in May

Hotels stays up slightly in May

The National Institute of Statistics have released figures showing the number of hotel stays in May increased by 0.4% compared to the same month last year.

During the month hotels earned 34.3 euros per available room with the average bill per occupied room being 64.5 euros.

Hotel Tourism Short-Term Trends – May 2012

During the month of May, 24.7 million overnight stays were recorded in hotel establishments, indicating a 0.4% increase as compared with the same month in 2011. Overnight stays for residents decreases 5.6%, while for non-residents experienced an increase of 3.5%.

The average stay increased 0.8% as compared with April 2011, standing at 3.2 nights per guest.

During the first five months of the year, overnight decreased 1.4% as compared with the same period in 2011.

In turn, the Hotel Price Index (HPI) registered a 0.7% decrease in May. Regarding the indicators on the profitability of the hotel sector, invoicing per occupied room reached an average value of 64.5 euros, and income per available room stood at 34.3 euros.

In terms of occupancy, 48.6% of the available bedplaces were filled in May, indicating a 0.1% decrease as compared with the same month the previous year. The weekend occupancy rate by bedplaces stood at 54.9%, with an increase of 0.3%.

Overnight stays of guests resident abroad

Guests from the United Kingdom and Germany registered rates of 28.4% and 26.3%, respectively, of the total overnight stays by foreign nationals in May. The British market experienced a 7.8% increase and the German market experienced a 1.7% interannual increase in overnight stays.

Overnight stays of guests from France, Netherlands and Russia (the following countries of origin) registered interannual rates of 7.1 %, 0.9% and 32.9%, respectively.

Main destinations

The main destination chosen by non-residents was Illes Balears. In this Autonomous Community, overnight stays by foreign nationals increased 6.2% as compared with May 2011. It was followed by Canarias, with an interannual rate of 1.9%, and Cataluña, with an increase of 5.8%.

Andalucía, Cataluña and Comunitat Valenciana were the main destinations of guests resident in Spain, with interannual rates for overnight stays of –7.8%, –1.8% and –1.9%, respectively.

Results by Autonomous Community, tourist area and tourist site

During the month of May, Illes Balears was the Autonomous Community with the highest occupancy rate by bedplaces (61.2%), followed by Canarias (57.3%) and Comunidad de Madrid (53.9%).

The tourist areas with the highest occupancy and overnight stay rates were located on the islands and the coasts. The zone of Barcelona recorded the highest occupancy rate by bedplaces (70.4%) and the highest weekend occupancy rate by bedplaces (79.5%). Mallorca registered more than 4.7 million overnight stays in May.

The tourist sites with the highest number of overnight stays were Barcelona, Madrid and Calvia. Benidorm reached the highest occupancy rate by bedplaces (74.1%) and the highest weekend occupancy (81.4%).

You can see the full report here: Hotel Tourism Short-Term Trends – May 2012

Consumer Price Index – May 2012

According to figures released by the National Institute of Statistics (INE) the annual change of the CPI for the month of May stands at 1.9%, two tenths below the change registered the previous month.

The report summarises the main results as follows:

• The annual change of core inflation remains at 1.1%.
• Monthly change of the overall index is –0.1%.
• The Harmonised Index of Consumer Prices (HICP) annual change stands at 1.9%, one tenth lower than that registered in April.

Annual evolution of consumer prices

The annual change for the overall Consumer Price Index (CPI) in May was 1.9%, two tenths lower than that registered in April. This change was the same as the CPI flash estimate, published last 30 May.

The groups that most contributed negatively in this rate were:

Transport, with an annual change of 4.2%, six tenths lower than that registered in April and the lowest since December 2009. This variation was mainly due to the drop in prices of fuels and lubricants for personal transport equipment was higher this month than May 2011. In fact, this service decreased its annual rate almost two points, standing at 6.7%.

Although the decrease of the annual rate of the service, worth noting the increase in prices of other transport services, that increase its annual rate more than 10 points, up to 10.9%, the highest since January 2002. This variation was due to the increase in prices of combined tickets in May 2012, as compared with the stability previous year.

Food and non-alcoholic beverages, whose annual change decrease five tenths, stood at 1.8%. The activities that highlighted by its influence in this decrease were fresh vegetables, other milk-based products and poultry meat.

Besides the decreases of the annual change of the CPI, worth noting were the increases in the annual change of the following group:

Housing, that presented an annual change of 5.1%, four tenths higher than that registered in April. This variation was explained by the increase in prices of gas, as compared with the stability registered in May 2011.

Alcoholic beverages and tobacco, with an annual change of 6.2%, more than one point higher than the previous month. This change was due by the increase in prices of tobacco.

The annual change for core inflation (overall index excluding unprocessed food and energy products) remains at 1.1%, therefore its difference from the overall index change decreased, standing at eight tenths.

Monthly evolution of consumer prices

In May, the monthly change of the overall CPI was –0.1%.

The groups with the greatest positive monthly contribution to the overall index were the following:

Clothing and footwear, with a monthly change of 2.1%, which included the behaviour of the prices of the spring-summer season. Their contribution to the overall CPI index was 0.170.

Housing, whose monthly change of 0.3% and a contribution of 0.032, largely due to the increase in the prices of gas.

Alcoholic beverages and tobacco, with a monthly change of 1.1% and a contribution of 0.031, due to the increase in the prices of tobacco.

In turn, among the groups with a negative contribution to the overall index, the most relevant was:

Transport, whose change of –1.4% and a contribution of –0.219 to the overall index, due to the decrease in the price of fuels and lubricants for personal transport equipment.

Results by Autonomous Community. Annual changes

All Autonomous Communities decrease their annual change, except Illes Balears that stood Comunidad de Madrid and at 2.1%. one tenth higher than that registered in April 2012, an La Rioja that remains their annual rates at 2.0% and2.1%. respectively.

In turn the Autonomous Community in which the annual change decreased the more was Canarias, from 1.5% in April to 1.2% in May.

Harmonised Index of Consumer Prices (HICP) 

In May. the interannual variation rate of the HICP stood at 1.9%. one tenth below than that registered the last month. This change is the same than the HICP flash estimate. published last 30 May.

The monthly change of the HICP was –0.2%.

In turn. the Harmonised Index of Consumer Prices at Constant Taxes (HICP-CT) registered in April 2012 an annual change of 1.9% one tenth below than that registered by the HICP in said month (2.0%). due to the increase in taxes of tobacco.

The monthly change of the HICP-CT was 1.1%.

You can download the complete report here: Consumer Price Index – May 2012

House prices down in May

TINSA have released their IMIE Index figures for May showing a decline of 11.1% year-on-year.

“The year-on-year variation in house prices in May recorded a modest slowdown in the trend of recent months”

The General IMIE Index fell during May in year-on-year terms, with a decline of 11.1% and an Index level of 1595 points, after falling below the 1600 barrier. The cumulative decline in house prices from the peak of the market in December 2007 reached a low-point increasing by four tenths to 30.2%.

In terms of the different segments, the municipalities of the “Mediterranean Coast” once again recorded the sharpest year-on-year decline during May with a fall of 14.1%, closely followed by “Capitals and Major Cities” which fell by 13.3% and “Metropolitan Areas” by 11.8% compared to the same month the previous year. The decline was greater than the market average in all three areas.

Once again “Other Municipalities” were below the average with a year-on-year decline of 8.4%, followed by the “Balearic and Canary Islands” in last place with a fall of 6%.

In relation to the overall decline from the top of the market, the “Mediterranean Coast” recorded a fall of 37.9% to May; followed by “Capitals and Major Cities” with 32.9%, “Metropolitan Areas” with 31.2%, “Other Municipalities” with 25.9% and lastly “Balearic and Canary Islands” with 24.1%.

Read the full IMIE May Index 2012 at Tinsa.

Unemployment falling – or is it just seasonal work?

Youth unemployment fell 2.3%

According to figures released by the Labour Ministry unemployment in Spain fell by 0.63% in May compared to the previous month.

However, compared to the same time in 2011 unemployment increased by 12.5%, or 524,463.

The figures also suggest that youth unemployment decreased 2.3% in May representing 10,429 young people returning to work. Youth unemployment, people aged between 18 and 24, has been the subject of embarrassment for Spain with over 50% looking for work.

However, although the figures are encouraging we must not forget that Spain has a huge seasonal-work sector. As the sun comes out and the tourists touch down all the bars, restaurants and nightclubs begin increasing their staff to handle the onslaught of fun seekers descending on them throughout the summer.

Those jobs, however, are usually only temporary – from June to September – and once the summer is over these workers will rejoin the jobless.

According to figures from the European Union Spain currently has the highest unemployment rate in the eurozone at 24.3%.

“We find ourselves in a second phase of recession, which, even if it is not as brutal and deep as the first, has had a negative impact on employment,” said Engracia Hidalgo, the Spanish junior labour minister.

Prime Minister Mariano Rajoy has been forced to pass billions of euros of spending cuts and tax increases as part of efforts to reduce the country’s debt levels. Some analysts believe these have had a negative impact on employment, and the economy.

More downgrades for Spain

Further downgrades for Spain

Ratings agency Standard & Poor’s lowered the credit rating of five Spanish banks on Friday, following the agency’s downgrade of Spain last month.

According to the agency’s statement the downgraded banks are Banco Popular, Bankinter, Banca Civica and the recently part-nationalised Bankia along with its parent Banco Financiero y de Ahorro (BFA)..

“The rating actions follow our review of the wider implications for economic and industry risks in the Spanish banking sector after our two-notch downgrade of the Kingdon of Spain,” the statement said.

Standard & Poor’s downgraded Spain’s sovereign debt rating last month to BBB-plus which included a negative outlook, saying it expects the Spanish economy to contract further both this year and next.

Bankia, Spain’s fourth-largest and partially nationalised earlier this month, was downgraded from BBB- to BB+. The banks BFA rating was also lowered to B+ from BB-.

The downgrade comes as the board of Bankia was holding a board meeting to make plans for its recapitalisation amid reports that it may be about to ask the government for up to 20 billion euros from the state to stay afloat.

The state took a controlling 45-percent stake in Bankia by converting a loan of 4.465 billion euros to its parent group Banco Financiero de Ahorros (BFA) into equity.

The ratings agency also cut its rating for Banco Popular and Bankinter to BB+ from BBB- and reduced its rating for Banca Civica to BB from BB+.

Another corrupt mayor – this time in Casares

Casares joins the corruption list

Spanish police have arrested former Casares mayor Juan Sánchez and his wife, along with an Estepona lawyer and a fourth unidentified person.

The arrests were made on Monday by police acting for the anti-corruption prosecutor. They appeared before the judge following their arrest.

Casares is a small municipality with just 5,300 residents and has now joined Manilva, Marbella, Estepona, Alhaurín el Grande, Alcaucín and Ronda on the list of towns involved in corruption scandals involving either serving or former mayors.

The four are the be charged in connection with money laundering and town planning irregularities, and allegedly involve organised criminal organisations.

Computers were seized from the town hall while the former Izquierda Unida mayor was taken to Alhaurin prison after failing to secure bail of 200,000€.

The Guardia Civil and the National Police are involved in the investigation at Casares Town Hall which has been temporarily closed to the public while the investigation is in progress.

A spokesperson for the Izquierda Unida said they were “surprised” by the arrests.