Buying a Home More Affordable in Spain than in the EU

Posted by on Sep 20, 2014 in News

According to the fourth annual analysis of the housing market in Spain, carried out by the real estate department of Deloitte, the cumulative decline in house prices since the beginning of the crisis has caused the average rate of effort of Spanish households (percentage of household income spent on mortgage payments) to fall steadily over recent years to stand at 33%, a level close to reasonable levels of balance. Similarly, the average price of housing in Spain (excluding the financial variable in order to establish a comparative analysis with the European Union) is now 4.4 times the individual gross salary, compared to a 6.1 ratio on average in the EU (and countries like Britain and France with ratios of 8.5 and 7.9 times the individual gross wage, respectively).    In a provincial analysis, Barcelona and Guipúzcoa have, for the fourth year, the highest rates of effort in Spain, due to the high price of housing in these provinces, while in Cadiz, the difficulty in accessing housing is motivated by the macroeconomic conditions. In contrast, the purchase of housing in provinces such as La Rioja, Lleida, Murcia or Pontevedra is more accessible, with rates of effort below the 30% threshold. The real estate context reflected in the latest report is more positive than the last three years, with up to 20 Spanish provinces already in a good position to deal with the recovery of real estate activity, taking into account both their macroeconomic environment (demographics, unemployment, population growth, etc.) as well as the real estate fundamentals (price of housing, rate of effort, stock, etc.). These provinces are: Álava; Asturias; the Balearic Islands; Barcelona; Burgos; Cantabria; Guipúzcoa; Guadalajara; Huesca; La Coruña; Lleida; Madrid; Navarra; Palencia; Segovia; Soria; Teruel; Valencia; Valladolid and Vizcaya. Read...

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House Prices Rise for First Time in Six Years

Posted by on Sep 20, 2014 in News

According to the latest house price index of repeated sales (IPVVR) prepared by the College of Property Registrars, house prices showed a 0.97% increase year-on-year during the second quarter of 2014, representing their first increase in the last six years, although the number of home purchases in this period declined by 5.4% quarter-on-quarter. El Mundo reported that, compared to the previous quarter, the value of homes saw an increase of 1.53%, which the registrars say “confirms again for the third consecutive quarter the incipient change in tendency”. Since the maximum values reached in the upward cycle, the cumulative adjustment amounts to 32%, a reduction that has brought the prices of homes back to 2003 values. The number of sales reduced by 5.49% between April and June over the previous quarter. A total of 78,464 transactions were closed in the second quarter of 2014, a figure that is above, however, the quarterly record low of 72,560 transactions which were carried out in the final stretch of 2013. Read...

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Home Mortgages Increased by 19% in June, Year-on-Year

Posted by on Sep 20, 2014 in News

The total number of new mortgages granted on homes recorded in the land registries (from previous public deeds), stood at 17,137 in June, exceeding by 19% the figures for the same month in 2013, according to provisional data published this week by the National Statistics Institute. With June’s year-on-year growth, home mortgages move back into positive territory, after registering two consecutive months of negative rates (-13.4% in April and -3.4% in May).    The average home mortgage value in the sixth month of the year reached 98,582 euros, which is 1.3% more than the same month of 2013, while the capital loaned increased by 20.5% year-on-year to 1,689.4 million euros. Month-on-month (June over May), the number of home mortgages fell by 4.6%, the lowest decline in this month in the last four years. The capital loaned for these home mortgages experienced a month-on-month fall of 5.2%, well below the 22% drop recorded in June 2013.   In the first six months of the year, the number of home mortgages has fallen by 14% compared with the same period of 2013, with a decrease of 12.7% in the capital loaned and a 1.5% increase in the average mortgage value. The regions which registered the greatest numbers of home mortgages in June were Madrid (3,481), Andalucía (2,900) and Catalonia (2,435). Read...

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Second Hand Home Prices Fell by 5.6% in July Year-on-Year

Posted by on Sep 6, 2014 in News

The average price of a used home fell by 5.6% in July, over the same month of 2013, to reach a price per square metre of 1,676 euros, according property portalidealista.com.     Month-on-month, the prices rose in three regions: the Balearic Islands (+1.1%); Cantabria (+0.2%) and Madrid (+0.1%). All the remaining regions registered price declines, with the greatest being those registered in La Rioja (-3.1%), Aragon(-1.8%) and Murcia (-1%). The Basque Country is still the region with the highest price per square metre (2,778 euros), followed by Madrid (2,604 euros) and Catalonia (1,911 euros). In contrast, the regions with the lowest prices are Castilla-La Mancha (1,010 euros per square metre), Extremadura (1,043 euros) and Murcia (1,064 euros). Since the bursting of the housing bubble three capitals have now seen their prices fall by over 50%. The largest post-bubble declines have been recorded in Lleida andZaragoza, where prices have fallen by 56.3% and 52%, respectively, while Huesca is the third city where prices have halved, dropping by 50.8%. Read...

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Annual Decline in Housing Prices in Spain Moderates

Posted by on Sep 6, 2014 in News

Declines in housing prices are continuing, but are less intense as time passes. This is according to the pisos.com monthly report on selling prices, which notes that resale property in Spain registered an average price of 1,603 euros per square metre in July 2014. This represents a fall of 8.62% compared with July 2013, while compared to June this year, the decline stands at 1.16%. Miguel Ángel Alemany of pisos.com stressed that although prices have not escaped the downward trend that began with the housing crisis, the declines being registered are reducing, and “the pronounced overvaluation affecting housing in Spain is definitely past”. According to Alemany, the statistics point to a stabilisation in prices with “mild rallies already occurring in certain consolidated areas, which could increase in 2015 if the economic environment improves, which could happen if the good results of the last Labour Force Survey are maintained”. Read...

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