According to Premier Marbella news sources, in a recent statement issued by the leading building promoters and architects, it was announced that even though the recent indicators are positive towards property sales in Malaga province, until the stock of unsold built properties are disposed of the new construction sector will not reactivate. Continue reading
According to Premier Marbella news sources, a report issued by the Council of Notaries in the first quarter of this year shows overseas buyers purchased a total of 15,402 properties in Spain, an increase of 27.2% for the same period year-on-year and accounting for 19.4% of all Spanish property sold in the first period of 2014. These figures would indicate that foreign buyers constitute one of the main engines of growth in Spanish property sales. Continue reading
According to Premier Marbella news sources, Property sales fell by 12.6% in March from the same month in 2012, to a total of 22,086 transactions, the lowest figure since April last year, when property transactions just topped 21,500, as reported by the National Statistics Institute (INE). The March decline comes after three consecutive months of annual increases and may be a consequence of the end of the tax benefits for home ownership since last January.
The housing sales rose 17.3% in February from the same month in 2012, to a total of 35,486 transactions, thus stringing three consecutive months of annual gains, according to the National Statistics Institute (INE). The end of the tax benefits for the purchase of property from January 1 this year could be behind this increase in transactions, because of the delay in logging entries in the property registry (sales which closed a few months ago).
The transaction of previously owned homes rose 16.5% in February year on year, adding up to 16,723 operations, while that of new homes rose 18%, to 18,763 transactions. 86.1% of property transmissions were private homes, which meant an increase of 18% to 30,555 operations. The state housing operations were 4931, with a rise of 13.4% compared to February 2012.
The Consumer Price Index (CPI) in Spain rose 0.4% in March compared to February, but overall has reduced by four tenths on the year rate to 2.4%, thanks to cheaper fuel, according to the indicator advance on the evolution of prices in Spain released Wednesday by the National Statistics Institute (INE).
The annual rate of 2.4% reached in March is the lowest since July last year, when inflation had stood at 2.2%. The IPC has maintained the trend, for the fifth consecutive month, below the threshold of 3%, after peaking last October when, with the increase VAT inflation had soared to 3.5%.
The Spanish housing stock has depreciated 1.1 billion euros in the last four years, from 5,713 billion euros to 4,600.9 billion euros, or 19.5% less, and, according to a study by the appraiser Euroval, in this period the net balance of housing has increased by one million units. The report reveals that in this period the housing stock has increased by 4% and its value has been reduced by 20%, with Madrid being the region where housing has depreciated most (by 25%), and Extremadura where it has depreciated least (by 7.4 %).
According to the study, between 2011 and 2012, Spanish properties as a whole have depreciated by 7.42%. “Housing wealth is very relevant to economic decision-making and affects the capacity for borrowing, saving and consumption,” the report says. The equity increase in Spain is not mainly due to the number of dwellings, but the prices, because the value grew annually at rates in excess of 20%, while the number of dwellings grew at a similar figure (24%) for the entire decade. The sale of homes was down 11.3% in 2012. However, this figure rose year on year in December after three consecutive months of falls. According to figures from the National Statistics Institute (INE), achieved sales transactions in the last month of the year reached 23,523 units which was up 2.3% on the same period last year. Records are based on statistics from the Property Registry Office.
The sale of homes was down 11.3% in 2012. However, this figure rose year on year in December after three consecutive months of falls. According to figures from the National Statistics Institute (INE), achieved sales transactions in the last month of the year reached 23,523 units which was up 2.3% on the same period last year. Records are based on statistics from the Property Registry Office. With respect to December 2012, the volume of property sales was recorded at 8.3%. Relating this to the types of property 89.7% of homes were open market and 10.3% state housing. In annual terms the number of homes sold on the open market was up by 5.7%, while state housing had a decrease of 19.9%. In addition, 48% of properties sold in December 2012 were new builds and 52% were second hand. The number of sales operations on new homes was up by 3.8% and that of second hand property increased by 0.9% compared to December 2011
The number of mortgages in November on housing in Spain fell by 31.6% (annually) to 19,115 units. According to the National Statistics Institute (INE), the figure is similar to that of the previous month and continues in the ‘minimums zone’ since statistics started. The data refers to dates when property sales increased confirming the idea that more and more property is being bought in cash. There was a time when the number of monthly mortgages far exceeded the number of property sales. This occurred because mortgage activity was even higher than the buyer, as there were numerous mortgage transactions that were linked to a purchase (refinancing, for example).
However for some months now the data from the National Institute of Statistics (INE) shows a turnaround. According to the latest data from INE the number of sales was 25% higher than mortgages. In 2007 the situation was reversed, as the number of mortgages was 50% higher sales. The fall in house prices coupled with the increase in spreads on mortgages is prompting more homes to be purchased with cash. This phenomenon is occurring especially in the affordable housing sector, where some buyers may get to purchase without availing of a mortgage (average interest rates grew up to 4.39% in November). This has also allowed the average amount per mortgage is falling less than the price of housing. Thus, the average mortgage fell only by 4% year on year, when property is down over 10%.