Outstanding Mortgage Lending Balance Dropped by 3.6% in June

Posted by on Sep 10, 2016 in News

The balance of mortgages outstanding in Spain fell by 3.6% in June, compared with the same month of the previous year, to stand at a total of 670,185 million euros, according to figures published in apress release last week by the Spanish Mortgage Association (AHE). In monthly terms, this balance reduced by 0.2% in June over the previous month, while in the cumulative figures to June this amounted to a decline of 1.7%. Banks and savings banks accounted for practically all of this outstanding amount, with a balance of 609,978 million euros, although this amount also represents a reduction of 3.6% over the previous year. In terms of the total volume of managed credit, June closed with a year-on-year decline of 3.8%, to 680,086 million euros. Moreover, El Economista reported that the AHE maintains that the Spanish mortgage market has evolved “positively” in the first half of the year, registering some data which corroborates a “gradual and progressive recovery of the sector”. They also highlighted the positive evolution of the indebtedness in the private residential sector, which in June stood at 9.52%, the best data since 2012. Read...

Read More »

Sareb Extends Home Sales Campaign Until the End of September

Posted by on Sep 9, 2016 in News

Sareb, Spain’s so-called bad bank, which manages assets proceeding from the restructuring of the banking system, has amassed revenue of over 31 million euros with the sale of assets included in their ‘Tu casa a toda costa’ campaign, which they have now decided to extend until the end of September due to the good reception given to the market. El Economista reported that the government-owned company has exceeded the goal of 25.3 million euros which was anticipated in April, when it launched the campaign, gaining 25% more revenue than expected. These figures are the result of the sale of 339 properties, which includes apartments and single-family homes in Valencia, Andalucía, Asturias, the Balearic and Canary Islands, Cantabria, Catalonia, Galicia andMurcia. Read...

Read More »

BBVA Forecasts Continued Gradual Growth in House Prices

Posted by on Sep 9, 2016 in News

BBVA Research, the research service of the financial institution, says the price of housing in Spain “has not only bottomed out, but will continue its path of gradual growth in the coming months”. The BBVA explains in their latest  Spain Real Estate Observatory  report published last week that, while the “optimism about the future state of the economy seems moderate” it will lead to the purchase of housing, especially replacement housing or as a means of investment. El Economista reported that, in addition, the entity highlighted that the tourism data for Spain indicates a new record is likely this year, which will surely maintain the good tone of foreign demand. The BBVA also added that, in addition to the aforementioned, it should be noted that the present financing conditions remain very favourable to buyers. According to the report, the real estate market in the first half of 2016 has shown a positive trend as a whole, creating employment as a result of increased economic growth, increasing access to credit in a financially stable environment, and that the change of expectations around the sector accounts for the growth in sales and the initiation of housing between January and June. Looking to the second half of the year, the BBVA expects that the residential sector will continue “along the trend of growth, although economic moderation expected for the last months of the year suggests slower growth in housing sales compared to those recorded in the first half”. The uncertainty surrounding the economic policy decisions may also have some reflection in the demand. Read...

Read More »

Housing Mortgages Grew by 15.5% Y-o-Y in June

Posted by on Sep 9, 2016 in News

Data published this week by the National Statistics Institute reveals that the number of new mortgages constituted on homes recorded in the Property Registers reached a total of 25,274 in June, which represents an increase of 15.5% over the same month of 2015. The Institute pointed out that their data is compiled from transactions carried out in previous months. The June increase, with which home mortgages accumulated 25 consecutive months of rises, is however almost 19 points lower than the increase registered in May, when the constitution of mortgages on homes rose by 34.1%. El Economista reported that the average value of the new mortgages constituted on homes in June reached 112,516 euros, which is 7.5% more than in the same month of last year, while the capital loaned increased by 24.2% year-on-year, to over 2,843 million euros.   In the first six months of the year, the signing of new mortgages on homes accumulated an increase of 19%, with increases of 21.9% in the capital loaned and 2.5% in the average loan amount. In June, the regions which registered the greatest number of new mortgages on housing were Andalucía, with 4,995 registered, followed by Catalonia (4,161) and Madrid (3,905). Read...

Read More »

Home Buyers Still Offering 20.9% Below Asking Prices

Posted by on Sep 9, 2016 in News

During the month of July, home buyers in Spaincontinued to make offers on homes at well below the prices set by the owners. At the month end the average reduction requested was 20.9%, according to data from a study by property portal,idealista.com, which analysed over 2,100,000 offers presented by potential home buyers to the sellers via their portal since January of 2010. This figure is only slightly lower than that recorded in July of last year, when the average discount requested was 21.6%. Looking at each of Spain’s regions, the greatest gap registered between buyers and sellers was in La Rioja, where buyers demanded, on average, a discount of 23.6% off the selling price, followed by Cantabria (-23.5%), Murcia (-22.7%), and Valencia (-22.6%). In contrast, Madrid is the region where both parties were closest, with the difference between the amount offered and the purchase price reaching just 16.5%, followed by Navarra and the Basque Country, both requesting discounts of around 19.7%. Read...

Read More »