Price of Resale Housing Fell by 9.19% Y-o-Y in October

Posted by on Nov 25, 2014 in News

According to the latest monthly report released by www.pisos.com on house selling prices, prices are still falling month-by-month. The property portal’s report notes that resale housing in Spain registered an average price of 1,574 euros per square metre in October 2014. Compared to October 2013, this represents a decline of -9.19%, while compared to September 2014 the decline is -0.52%. The current mortgage market and tax reforms are stimuli for sales, according to the managing director of the portal, Miguel Ángel Alemany, who explained that those in a favourable economic situation have a double advantage, at least until the end of the year, with mortgages being cheaper than ever thanks to a record low Euribor, and the war on spreads. Furthermore, he said that if the personal income tax reform is approved without modification, then certain vendors will offer additional discounts in order to avoid the payment of capital gains tax, which would rise significantly from 2015. The most expensive regions in the monthly report for October 2014 are listed as the Basque Country (2,982 euros/m²), the Balearic Islands (2,076 euros/m²) and Madrid (2,031 euros/m²), and the cheapest are Castilla La Mancha (990 euros/m²), Extremadura (1,209 euros/m²) and Aragón (1,286 euros/m²). Compared with October 2013, no increases were registered, while the greatest declines were registered in Murcia (-12.87%), Aragón (-12.52%) and Madrid (-12.30%). Read...

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Could Spanish House Prices Drop by another 8.1% to 2016?

Posted by on Nov 25, 2014 in News

It has been widely reported that the decline in housing prices is coming to an end in Spain, in general, although the European Central Bank (ECB) and the European Banking Authority (EBA) warn that they still could have some way to go. Published along with the European and Spanish banks’ stress test results this week, the ECB’s worst case scenario for Spain is that, up until 2016, Spanish house prices could fall by 8.1%, with homes in Spain depreciating by 3.1% in 2014 and by 5% more in 2015-2016. However, these are hypothetical declines in the Spanish property market and are actually less intense than the average worst case predictions for the European Union (EU). According to these forecasts, in the worst possible case, the European housing market would register a price decline of 8.7% this year, and of 14% in the next two years. This forecast was published just as the housing market in Spain seems to be balancing out, with a variety of statistical analyses emerging, giving both small declines as well as slight increases in sales prices. In any case, El Mundo reported that this still points towards a certain stabilisation after an accumulated decline in housing prices, since their peak values reached, of 40% on average. Read...

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Home Mortgages Increased by Nearly 24% Y-o-Y in August

Posted by on Nov 25, 2014 in News

The average value of home mortgages contracted in Spain in August this year reached 102,430 euros, which is an increase of 5.8% over the same month of 2013, while the capital loaned increased by 31% year-on-year, to a total of 1,540.5 million euros. According to the latest data published this week by the National Institute of Statistics, who pointed out that the figures are based on deeds performed in previous months, the property registers recorded a total of 15,040 new mortgages on homes in August, which is 23.8% higher than the figure for the same month in 2013.      Including the year-on-year increase for August, home mortgages have accumulated three consecutive months of double digit increases, after rising by almost 19% in June, and by 28.8% in July. In contrast to the year-on-year rate, month-on-month (August over July), mortgages on homes fell by 16.9%, representing their biggest decline in this month of the last five years. The capital loaned for these home mortgages fell by 15.7% month-on-month, registering its second largest monthly decline since 2010.     In the first eight months of the year, the number of mortgaged homes fell by 6.6% over the same period in 2013, while the capital loaned fell by 5%, and the average mortgage value increased by 1.7%. In August, the regions which recorded the greatest number of home mortgages were Andalucía (2,823), Madrid (2,336) and Catalonia (2,049). Read...

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