Next ´Annus Horribilis´ For Housing: Sales Plummet by 20% in 2013

It was not a relapse but an absolute knock-off. Housing sales in Spain fell by 19.7%, whereas mortgage granting shrank by 27.8% in 2013. The all-along-the-line slump was generated after a rebound in 2012 by 3.6% (360.000 unit score) more than in 2011. In 2013, even that number has not been achieved and was equal to 296.989 transactions.

The 2012 rebound caused (…) an interannual regression of 36.1% in the fourth quarter of 2013. The abundance of various factors hampers clear recognition of a certain tendency.

In order to understand the sales volume in 2012, from October to December only more than 100.000 dwellings have been sold. To compare, in the same period in 2013 merely 61.000 units have found a new owner.

Talking about the house classification, the biggest depreciation has been registered in case of flats (21.7%) and single-family houses (10.6%) in terms of transactions. Flat sales decreased by 16.7%. Moreover, second hand home sales declined by 4.2% and  the new house purchase by 47.4%.

Mortgage Granting Dips by 27.8% Down

The slump in sales and the lack of financing had an acute impact on the mortgage granting. (…) 254.648 operations were registered in 2013, that is 27.8% less than in 2012. The number also indicates 80.9% less than during the real estate golden age six years ago. In the fourth quarter, the signing went up by 35.8%, influencing the dwelling sales.

When it comes to mean amount granted in a mortgage, in 2013 it fell by 6,7% settling down at €125.070. (…) Moreover, there has been an interannual rise of 0.6%.

Price Drop-off of 8.6%

Mean price per square meter in a flat showed a break by 9.7% to €1.333, while in case of a single-family house it 3.6% smaller, setting itself at €1.047 .

In interannual terms, in 2013 the average price per square meter went down by 9.6% to €1.350 in flats, 7.7% less to €1.301 in pre-owned houses and 6.5% depreciation to €1.622 in case of new dwellings.

Generally, the price per square meter fell by 8.6% in 2013, and marked a mean of €1.242 (…).

Original article: El Confidencial (Elena Sanz)

Translation: AURA REE

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Translation/Summary: aura