August Home Sales Disillusion With a 1.1% Decline

The growing tendency in property sales observed in the last five months stumbled and fell down in August. While the entire sector believed that Spanish housing had hit the bottom, the news invoked doubts.

Real estate transactions descended 1.1% in comparison to the same month a year before and showed 23.525 deals, reports the National Statistics Office, the INE. If juxtaposed with the preceding month of July, the number plummeted by 17.7%, meaning the biggest month-on-month (July over August) gap in the last five years.

Year-to-date, home purchase fell 3% y-o-y, the INE informs, basing on deeds entered into the registries in August but sealed in the previous months.

Out of the total of transactions carried out in the eight month of 2014, 8.104 (34.4%) corresponded to new homes (by 22.1% less than a year earlier) and 15.421 (65.6%) to existing units (15.2% more y-o-y).

Unsubsidized properties were purchased 1.3% more often than in 2013, marking 21.204 deals in total, and subsidized houses gained in popularity 0.7% (2.321).

The number of property transfers registered in August totalled at 109.731 deeds, by 8.9% less than in August 2013 and by 20.8% less than in July.

On year-on-year basis, sales remained stable with 50.697 operations, donations decreased by 13.8% (2.604) and inheritance went down by 2.9% (25.593), unlike swaps, which shot up 75.7% (845).

Land reparcelling, horizontal divisions, joint operations, in lieu payments, foreclosures and repossessions altogether showed 29.992 deeds, by 24.9% less than a year earlier.

As per the INE’s data, rural properties represented 15.6%, while urban 84.4% of the total. Among the latter, 55% were dwellings.

The biggest number of property transfers divided by each 100.000 inhabitants was entered in registries of Aragon (487), Castille and Leon (472) and La Rioja (462).

Furthermore, the most significant improvement in home sales was seen in Asturias (29.3% more), Castille and Leon (27.2%) and the Balearic Islands (19.7%). In turn, a considerable drop-off in their purchase was witnessed in La Rioja (48.4% less), Catalonia (11.7%) and Navarre (9.5%).

Original article: Cinco Días
Translation: AURA REE

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