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Average House Price Down in November

New apartme sales increased 17.5% year-on-year
New home sales increased 17.5% year-on-year

New apartment sales up 17.5% year-on-year

November 2020 saw 48,251 home sales in Spain, representing a year-on-year fall of 0.9%. Considering the months of lockdown, this fall is nothing like as bad as was expected.

By type of property, the sale of apartments/flats showed a year-on-year fall of 7.6%, according to a report from the Notaries. This reduction in apartment sales is due entirely to the fall in sales of second-hand properties (-9.4%) as the number of new apartments sold increased by a whopping 17.5% year-on-year. The sales of single-family homes (villas, townhouses) also increased significantly with a 22.2% year-on-year increase.

Average Price

The average price of home sales in November reached €1,362 per square metre. This represents a fall in price of 5.7% when compared to November 2019. This reduction in the price per square meter of home sales was exclusively due to the decrease in the price per square meter of apartments (-5.4% year-on-year) since single-family homes saw average prices increase by 0.2% year-on-year.

Within these, the price of second-hand apartments stood at €1,498 (-6.9% year-on-year) and that of new apartments at €2,198 (-8.2% year-on-year).

In November the sale of other types of properties (commercial, land etc) stood at 11,092 operations (-1.4% year-on-year), of which 44.2% corresponded to land or plots. The average price per square meter of these transactions was €155 (-35.2% year-on-year).

Mortgage Loans

The total number of new mortgage loans made in November was 33,976, representing an increase of 1.9% year-on-year. The average amount of those loans was €161,702, thus reflecting a drop of 8.1% year-on-year.

New mortgages taken for the acquisition of a property increased 4.8% year-on-year in November (27,789 loans). Breaking down by property, there was an increase in the number of new loans for the acquisition of a home (6.7%) and a decrease among those for the acquisition of other properties (-20.2 %).

The average amount of the loans for the acquisition of a home was €134,846, representing a decrease of 2.7% year-on-year, and for the rest of the properties the average loan reached €178,424 (-7.2% year-on-year).

Loans taken in November for construction showed a year-on-year increase of 4.0%, reaching 681 operations. The average amount of these was €327,888, thus reflecting an interannual contraction of -45.3%. The average amount of loans for the construction of a home fell by 12.5% to €288,518 (570 operations).

The percentage of home purchases financed by a mortgage loan was 54.6%. In addition, in this type of purchase with financing, the amount of the loan was on average 74.7% of the property value.