Property sales increased 11.4% in May
According to data released by the General Council of Notaries, houses in Spain have dropped in value by 5.1% between January and May of 2016, reaching an average cost of 1,261€ p/m². When comparing to the same period in 2015 the decline in prices is 1.6%.
The property market slowed in May following two months of increases. There were 38,845 transactions placed before notaries in May, up 11.4% year-on-year, but slightly down on the numbers recorded in March and April.
The notaries data shows the cumulative total number of sales to May this year is 181,056 transactions (sales and purchases), 16.1% more than during the same period in 2015.
Sales numbers were led by resale apartment properties with 26,889 transactions, representing an increase of 16.8%. For single-family homes the number of transactions increased 9.2% year-on-year to 7,885 transactions.
The number of new properties sold was down by 22.6% over the same period in the previous year to 2,495 units. This is partly due to the lack of construction in Spain over recent years. I would expect a different number here in 2017 as construction is booming once again.
A spokesman for the General Council of Notaries said the increase in housing sales recorded in May “reflects the underlying path of recovery in the Spanish housing market”.
Mortgages
The total number of new mortgages approved in May was 28,416, representing an annual increase of 6.9%, while the average amount of new mortgages showed an annual increase of 7.6% to reach 153,298€.
New mortgages for the purchase of a property in May totalled 18,957 new loans, a year-on-year increase of 17.4%. The notaries suggest this is due both to an increase in lending for home purchases but also an increase in the number of new mortgages for the purchase of other types of property.
The council’s data shows the number of new mortgages for the purchase of a home increased in May by 17.8% year-on-year, to reach 17,447 new loans.
The average amount of a new mortgage for a home purchase increased slightly to 123,297€, an increase of 0.2%, while the average price of all mortgages taken out in May was 132,311€, a 3.7% increase.
