Here you will find news, views, events and information relating to real-estate in Spain.

Home Sales Slump in June

Home Sales Slump in June
Average price of new apartments grew 12.7%

New apartments grew in price by 12.7%

In June, there was 46,527 transactions involving the sale/purchase of housing in Spain, an annual fall of 18.9%.

The average price per square metre of homes sold in June was €1,435, an annual increase of 1%, according to data from the Council of Notaries.

The fall in sales was mainly due to a large fall in the sale of flats/apartments, which dropped 22%. The fall was due to a drop in sales of both second-hand properties (-21.8%) and a similar fall in sales of new apartments (-23.1%).

In terms of the average price, the increase was due to an increase in the price of apartments of 3.7%, and a fall in the cost of single-family homes which saw a decrease of 1.9% year-on-year.

Looking closer at the price of apartments, the average price of second-hand homes stood at €1,596 p/m² (+2.7% year-on-year). The price of a new apartments grew by 12.7% to reach an average of €2,163 p/m².

In June, the sale of other types of properties stood at 10,940 operations, which is a fall of 17.3% since the same month last year. Of those sales, 38.3% correspond to land sales. The average price of those land sales was €247 per square metre.

Mortgage Slowdown

The total number of new mortgages taken in June was 31,499, which represents a fall of 15.1% when compared to June 2018. The average amount of capital borrowed in June was €193,545, reflecting an increase of 6.0% year-on-year.

The number of new mortgage loans taken for the acquisition of a property fell in June by 15.7%, year-on-year to 24,002 loans. This was due both to the fall in the granting of loans for the acquisition of a home (-16.2% year-on-year ) and a decrease in loans for the acquisition of other properties (-9.2% year-on-year).

Loans destined for construction showed an interannual increase of 14.1% in June, up to 808 operations. The average amount of these loans was €400,174, an interannual contraction of -32.0%. The average amount of loans for the construction of a house fell by 27.1% to €289,914 (655 operations).

Finally, the percentage of home purchases financed by a mortgage loan stood at 47.8%. In addition, in this type of purchase with financing, the amount of the loan was 74.7% on average.