Home Sales Up More Than 45% in the First Quarter

Posted by on May 27, 2014 in News

Housing sales statistics are showing signs of recovery, after consecutive quarters of declines. According to the General Association of Notaries, property transactions rose by 45.4% during the first quarter of the year, compared with the same period last year. This, in turn, is driving up housing prices which, to March, registered an increase of 1.6%. The Notaries put these data down to “the return to normal of transactions after the end of the income tax deductions for home purchase in 2012, but also reflect a stabilisation in sales”. Like most of the other experts, who consider it to be premature to talk of a market recovery, the Notaries also say it will be necessary to wait for more data to become available, but it appears that they might be anticipating a turnaround in the sector, or at least the end of the downward spiral, being most visible among resale homes, which constitute the main segment of the housing market. In the month of March alone, the 30,300 housing transactions carried out represented a year-on-year increase of 37.6%. For apartments, the increase in transactions was greater. For private apartments, the increase reached 38.5%, due to the increase in transactions on second-hand properties (+48.5%). Meanwhile, individual family homes showed sales growth of 37.4% in March, year-on-year. Read...

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Home Rental Prices Rose by 0.4% in April

Posted by on May 27, 2014 in News

The average price of rental housing in Spain in April stood at 6.91 euros/m2 per month, after experiencing an increase of 0.4% over the previous month, according to data published by property portal, fotocasa.es, and analysed by the IESE business school. It is not the first increase recorded in recent months, as in February, the price of rental housing registered an increase of 0.5%, following 19 consecutive months of declines. Since prices peaked in May 2007 (reaching 10.12 euros/m2 per month) the price of housing has accumulated a fall of -31.7%. Eight regions registered declines of over -30% since the maximum prices reached six years ago. Aragon is the region where rental prices have fallen most (-43.1%), followed by Cantabria (-37.9%), Valencia (-37.4%), Castilla-La Mancha (-34.1%), Murcia (-32.9%), Catalonia (-32.6%), La Rioja (-32.4%) and Andalusia (-30.5%). With regard to the quarterly change, calculated from January to April, the price of rental housing has risen by 0.6%. Quarter-on-quarter, rental prices have not risen since July 2012, when they rose by 0.4%. In fact, the quarterly increase recorded this month is the sharpest since June 2011. Regarding the year-on-year variation, calculated from April 2012 to April 2013, the average price of housing for rent in Spain fell by -3.6%. By region, six increases in rental prices were registered in April. These were for the Basque Country (+0.8%), the Balearic Islands and Catalonia (both up +0.7%), Castilla y León (+0.3%), the Canary Islands (+0.2%) and Madrid (+0.1%). In contrast, nine regions registered declines in rental prices. The sharpest declines were recorded in Castilla-La Mancha, Aragon and Asturias, which all fell by -0.5%, followed by Navarra (-0.4%), Extremadura (-0.3%), Valencia (-0.2%) and La Rioja, Andalusia and Murcia, all with price declines of -0.1%. Prices remained stable in Cantabria and Galicia compared to the previous month. Read...

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House Prices Registered a Year-on-Year Fall of 6.7% in Q1

Posted by on May 27, 2014 in News

The IMIE Local Markets Index for the first quarter of 2014, published by the real estate appraisal company, Tinsa, reveals that the price of housing in Spain fell by 6.7% year-on-year.    The last two quarters of 2013 registered declines of less than 10%; specifically, of 9.3% in the third quarter and 8.3% in the fourth. Since their maximum values reached in the last quarter of 2007, prices have now accumulated a decline of 39.7%, and are now at the levels registered in the third quarter of 2003. By region, the sharpest year-on-year decline in housing values was registered in Madrid, with a drop of 12.8%, followed by Castilla-La Mancha (-11.5%), and Cantabria, where prices fell by 10.4% over the last year. All the remaining regions recorded decreases below 10%.     The regions which registered declines more in keeping with the national average were Andalucía (-7.2%) and Catalonia (-5.8%).    The smallest declines in home values were registered in Galicia, which fell by only 2.1%, followed by Aragon (-2.7%), and the Balearic Islands (-3.4%), while the declines in housing values in Melilla, Extremadura and the Canary Islands did not exceed 5%, year-on-year. With regard to accumulated declines, Castilla-La Mancha is, for the moment, the only region to register a decline in house prices of greater than 50% since their peak values, specifically they have fallen by 51.1% since the third quarter of 2007.      Catalonia (-49.5%), Aragón (-47.5%), Madrid (-47%) and Valencia (-46.3%) are the other regions to have accumulated the sharpest descents, all above 45%. Apart from Melilla (with a decline of 14.8%), all regions have registered accumulated losses of over 25%, with the lowest of those being registered in Extremadura (-28.5%) and Asturias (-29.8%). Read...

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Bankia Triples Real Estate Sales in First Quarter

Posted by on May 8, 2014 in News

Bankia has tripled their number of properties sold in the first quarter of the year, reaching a total of 2,200 through to the end of March, compared with just 659 sold in the same period last year, reported El Mundo. The low number of properties sold in the first quarter of 2013 was primarily due to the entity just having completed the transfer of toxic assets to the Sareb, which began operating in late 2012, meaning the sales channels were still in their early stages. In view of these data, the entity estimates that the housing sector is beginning to level out, leaving behind its most severe adjustment phase. According to sources in the financial institution, after the last five years which have produced a strong adjustment, indicators are beginning to show “some slight stabilisation in demand which, together with the slowdown in the decline of developer activity, may be leading to a bottoming out and a stabilisation of activity levels”. However, these same sources indicate that although most of the price adjustments have already been carried out, “there is still room for correction”. Thus, they estimate that, according to their forecasts, there will be “a small nominal adjustment in prices, of a slower manner, which will last until 2015, depending on the area”. “The key will be the impetus from foreign investment, as in the previous cycle”, they pointed out. Bankia highlighted the fact that the rate of absorption of the stock of unsold new homes is beginning to increase, although it is more due to the decrease in the number of completed new homes entering the market than an increase in demand. The bank’s portfolio of homes is made up of 70% apartments, 3.1% duplexes, 10.5% detached homes, 12.6% of terraced houses and 3.8% of individual family homes. Read...

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Construction Activity in Spain Rose by 23.9% in February

Posted by on May 8, 2014 in News

The revival of the construction industry in Spain seems to be getting closer, after recent data revealed signs of growth in the sector’s activity. This latest indication of recovery comes from the EU statistics office, Eurostat. According to the organisation’s production data related to construction in Spain, construction activity shot up by 23.9% in February, compared to the same period of 2013. This significant increase was only surpassed by Slovenia (33.1%) and Hungary (28.3%). Behind Spain, but still with positive figures, stood Poland (14.4%) and Germany (14.1%), while in contrast, the greatest decreases were recorded in Romania (-14.7%), Portugal (-11.5%) and Italy (-7.9%). Year-on-year, a rise in construction activity of 6.7% was registered in the eurozone in February, and of 5.5% for the whole of the European Union (EU), compared with the same month of 2013. The increase in the eurozone was driven by a 6.6% rise in buildings production, and a 7.6% increase in civil engineering, while in the EU, the positive data was due to a 5.9% increase in the production of buildings and a 3.9% rise in civil engineering. Month-on-month (February compared to January), production in the construction sector increased by 0.1% in both the eurozone countries and in the whole of the EU. In January, the index was also positive, with monthly growth of 1.6% in the eurozone and 1.4% in the EU, indicating that the positive trend seems to be consolidating. Read...

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