Mortgage Default Rate for Home Purchase Falls to 5.8%

Posted by on Jun 26, 2015 in News

The latest data published by the Bank of Spain reveals that the default rate of mortgage loans for the purchase of housing fell to 5.8% in March, in the same way that the rate for developer and real estate sector loans dropped to 34.7%. In the last year, the default rate on home mortgage loans has remained relatively stable at around 6%, and at the end of the first quarter of the year, these overdue mortgages totalled 33,721 million euros – compared with 34,236 million euros in December – in a loan portfolio of 573,966 million euros.    Last year, in March 2014, the mortgage default rate rose to 6.3%, representing 37,858 million euros of a mortgage loan portfolio totalling 600 million euros. With regard to property developers’ loans with Spanish financial institutions, El Mundo reported that in March they fell below 150 million euros, to 146,613 million euros. Of this total, 50,948 million euros (34.7%) were non-performing loans. Read...

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Home Sales Register Best Results Since 2010

Posted by on Jun 26, 2015 in News

According to all recent statistics, the housing market in Spain is picking up pace, with the latest data on real estate transactions, released by the Ministry of Public Works, showing that the number of home sales increased by 4.4% during the first quarter of 2015, to reach a total of 85,133 transactions, which represents the highest number of transactions in a first quarter of a year since 2010. In the 12 months from April 2014 until March 2015, the number of home sales transactions formalised before a notary amounted to 369,238, and represents an increase of 12.8% compared to the preceding 12 months. By type, second hand housing continues to account for most of the activity, registering 74,153 of the transactions in the first quarter of the year (87.1% of the total), which is an increase of 8.8% over the same period of 2014, while the sales of new homes registered only 10,980 transactions – a drop of 17.8% compared with the same period of 2014. Moreover, some 95% of the total transactions (80,897) related to free housing and the remaining 5% to protected housing (4,236). Read...

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Home Sales Accelerate in April, Rising by 9.4%

Posted by on Jun 22, 2015 in News

The sale of homes in Spain increased by 9.4% in April, compared to the same month of 2014, reaching a total of 27,241 transactions, the National Statistics Institute reported yesterday. April’s year-on-year increase is more than seven points above that registered in March, when home sales rose by 2.1%. With the April figure, home sales accumulated their eighth consecutive year-on-year increase, thanks exclusively to the 45.5% increase in the number of transactions on second hand housing, which totalled 21,014, since the sale of new homes fell by 40.4% compared to April 2014, to 6,227 transactions.    The Institute’s data relates to sales recorded in the Property Registers of transactions carried out in months prior to the period of reference. In the first four months of the year, home sales accumulated an increase of 9.1%, with transactions on new homes registering a decline of 36.7%, while the number of transactions on second hand housing rose by 44.8%.      Month-on-month (April over March), home sales fell by 0.1%, their most minor decline in this month in the past five years. Read...

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The Rise in House Prices Moderates

Posted by on Jun 22, 2015 in News

The average price of free housing in Spain slightly moderated its increase at the beginning of 2015. According to the Housing Price Index (HPI) published by the National Statistics Institute this week, the price of homes rose by 1.5% in the first quarter of the year, compared to the same period of 2014, which is below the 1.8% price increase recorded at the end of 2014. Despite the increase moderating by three tenths quarter-on-quarter, house prices have accumulated four consecutive quarters of year-on-year increases, following six years of declines. The cost of homes began their descent in the second quarter of 2008 (-0.3%) and continued to fall until the second period of 2014, when they rose again after 24 quarters in negative figures. With regard to the type of dwelling, the price of used housing increased by 1.1% in the first quarter, year-on-year, compared with the increase of 1.7% recorded in the previous quarter, while the cost of new housing rose by 4% in the first quarter, which is more than two points higher than the fourth quarter of 2014, and is the highest rate recorded since the second quarter of 2008, when new homes registered a year-on-year increase of 5.3%. Read...

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