According to reports by Fotocasa.es and the National Institute of Statistics (INE), house purchase went up by 5.4% year on year, contributing to the rises registered in March and April, giving the first reliable signs of recovery.
Moreover, the study by fotocasa.es shows that in May the prices fell the least over the past three years, by 5.3% juxtaposed with the 11% of May 2013. Beatriz Toribio, the research head at fotocasa.es, reckons the economic outlook for the sector improves, especially if the positive tendency observed in the last months taken into consideration. The upturn influences the prices which slow down their steep way down.
As per the data of INE, in May existing home sales increased by 16%, while new houses depreciated by 8% year on year. Toribio assured that the Spanish market offers pockets of opportunities at the moment, due to having lost over 40% since the peak values. What is more, used dwellings require less tax-paying than the new units.
Also, real estate transactions started to progress year-on-year in 15 regions. However, Toribio warns it is too early to speak of turn in the tendency or the price correction end. Finally, she claims the property market will not recover until the lending, employment and work stability step in.
In turn, the director of research at pisos.com, Manuel Gandarias, remarked that May was the second month with the sales advancing since April 2013 and, according to him, the sector is stabilizing.
Original article: El Economista
Translation: AURA REE