Notaries Report Home Sales Increase of 11.1% in April

Posted by on Jun 28, 2014 in News

Another statistic showing the recovery of the housing market in Spain is the latest report published by the General Council of Notaries, which notes that home sales rose by 11.1% in April, and that the average price for these transactions grew by 0.7%, compared with the same month in 2013. This is perhaps the most realistic data since the transactions registered by the Notaries correspond faithfully to the indicated period. Specifically, the number of transactions carried out during April amounted to 30,048. “The upturn in property sales in recent months can be explained, in part, by the normalisation in the number of transactions following the end of the income tax deductions for home purchases at the end of 2012, but also reflect some stabilisation in the monthly sales”, said the Notaries. Apartment sales showed growth of 7.9% year-on-year, led by the resale property segment, whose transactions grew by 10.9%. This percentage contrasts with the purchases of newly built apartments, which fell by 8.4%. However, sales of family homes soared by 26.1%, year-on-year. In terms of prices, the average cost per square metre of the homes purchased in April was 1,216 euros, reflecting a slight year-on-year increase of 0.7%. For apartments, the increase stood at 2.1%, reaching 1,327 euros per square metre. Among them, the price of resale apartments was 1,315 euros per square metre (+3.7% year-on-year) and for the new apartments, the price was 1,404 euros per square metre (+5.2%). Read...

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Fall in Housing Prices Moderates to 1.6% in First Quarter

Posted by on Jun 25, 2014 in News

The price of private housing fell by 1.6% in the first quarter of 2014, compared to the same period last year – the lowest decline since the second quarter of 2010 – and accumulated six years of annual declines, according to the Housing Price Index (HPI) published by the National Institute of Statistics on Monday.  However, the price of housing moderated its decline between January and February, to increase by more than six points over the last quarter of 2013, which closed the year with an annual decline of 7.8%. By housing type, the price of second-hand homes fell by 1.7% in the first quarter of 2014 year-on-year, which is an increase of six points over the previous quarter, while the price of new homes fell by 1.1%, nearly seven points above that of the last quarter of 2013.     Quarter-on-quarter (first quarter of 2014 over the fourth quarter of 2013), the price of private housing registered a drop of 0.3%, compared with the decline of 1.3% registered between October and December 2013. By region, the largest declines occurred in Navarra, where house prices fell by 8.6% in the first quarter of 2014, compared with the same period last year, followed by Extremadura (-7.5%) and Castilla La Mancha (-6%). Nevertheless, in all three cases the declines have moderated, since in the last quarter of 2013 they registered decreases of 13.2%, 15.7% and 14.9%, respectively. Read...

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Spanish Government Approves Reform Laws for Property Registers

Posted by on Jun 25, 2014 in News

The Vice-President of the Spanish Government, Soraya Sáenz de Santamaría announced last week that the Government has taken an important step forward in the reform of the public administration services, with the approval of three new laws to be submitted to parliament which, she said: “are highly focused on facilitating the lives of our citizens, in removing administrative burdens and in using instruments available to us as a result of new technologies”. One of the draft laws is for the reform of the Mortgage Act and the Cadastre Act, with the aim of facilitating the secure exchange of data between the Land Register and the Cadastre Register, and thus avoiding contradictory and incomplete information on the same real estate property. The Vice-President underlined that the two institutions currently have very different powers but act in the same areas – the situation of property in Spain. For this reason, the coordination of information between the two registers is essential in order to correctly identify a property, and so provide a better service to citizens and, above all, legal certainty when it comes to purchasing a property or land. Read...

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Home Sales Increased by 5.3% in April

Posted by on Jun 24, 2014 in News

The National Statistics Institute reported last week that the sale of homes in Spain rose by 5.3% in April, compared with the same month in 2013, to a total of 24,968 transactions. This is the second consecutive year-on-year increase following that experienced in March, when housing sales soared by more than 22%, ending ten consecutive months of year-on-year declines. The Institute stressed, however, that the Easter holiday week could affect the data – as this year it fell in April while last year it was in March – therefore they consider it useful to analyse the results of both months. In addition it must be noted that the data released by the National Statistics Institute corresponds to sales recorded in the property registers from transactions carried out in previous months.     Month-on-month (April over March), home sales fell by 7.7%, their lowest decline in this month since 2010. The year-on-year growth in housing sales is due both to the increase in the sale of second-hand homes, of 5.1%, to a total of 14,306 transactions, as well as the purchase of new homes, which rose by 5.7%, up to 10,662 transactions. The majority of the home sales transactions carried out in April, namely 88.9%, were for private housing. The sale of such housing grew by 4.3% year-on-year, to 22,199 transactions, while transactions on subsidised homes totalled 2,769, with an increase of 14.9% compared to April 2013. Read...

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Fitch Forecasts House Prices Will Bottom Out Early Next Year

Posted by on Jun 24, 2014 in News

The global credit rating agency, Fitch Ratings, has predicted that the price of housing in Spain will finally bottom out at the beginning of 2015, in a real estate market marked by high rates of unemployment and difficulties in obtaining financing. The agency highlighted the fact that the Spanish economy is growing once again and that unemployment is falling, which in the long run will help the prices.    However, they emphasised that the market still has a “large surplus” of housing and that the demand is limited by the “high unemployment and the cost of credit” as well as “reduced real incomes”. Fitch also added that the fall in mortgage transactions, of 80% compared to their 2007 levels, means that these limitations have not yet been fully reflected in the prices, although the latest data from the National Statistics Institute for March points to a small increase year-on-year, of 2%, in residential mortgages, their first rise in nearly four years. In this regard, Fitch believes that when house prices reach their lowest point, which they do not expect will happen before the end of the year, it is likely that they will have fallen by 40% in nominal terms since their peaks. In their report, the agency emphasise that housing prices in the most affected peripheral countries of the eurozone are starting to recover, albeit at different rates. Read...

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