Notaries: House Prices Fall By 0.3% In October

The average price/m2 of homes sold in October amounted to €1,226, which represented a slight YoY decrease of 0.3%, according to data provided by the General Council of Notaries. House prices increased by 4.5% during the third quarter, according to Spain’s National Institute of Statistics (INE).

House prices have been rising for six consecutive quarters, according to INE’s House Price Index.

However, according to the General Council of Notaries, the decrease in October was driven by the fact that the increase in the prices of single-family homes (4.7%) did not offset the decrease in the prices of flats (-1.1%).

By type of homes, second hand property prices decreased by 0.3%, whilst new build prices rose by 0.3%.

House sales increased by 2.7% YoY, to 35,088 transactions, whereby recording nine consecutive months of increases.

Meanwhile, mortgage loans rose by 3.6% in October, to 25,676 operations.

This data reflects the continuation of the underlying trend towards a light recovery in the housing market.

The percentage of home purchases financed using mortgage loans amounted to 43.2%, the highest figure since January 2012, excluding August.

For this type of purchase, with financing, the loan amount represented an average of 77.4% (of the purchase value), in line with the data seen in recent months.

New companies

8,242 new companies were constituted in the month of October, which represented a YoY decrease of 7.8%, the worst figure since February.

The average share capital of the newly constituted companies also decreased, by 4.7% on a YoY basis to €17,155.

Original story: Efe Empresas

Translation: Carmel Drake

Original Story:

Translation/Summary: Carmel Drake