House Sales Jump by 60% in January & Price Rises by 9%

14/03/2014 – Expansion

According to statistics provided by the General Council of Notaries, in January number of house purchases rose by 59.2%, whereas prices increased by 8.9%. The appreciation results from real estate market normalization due to removing fiscal benefits on house purchase at the beginning of 2013.

In January, the notaries entered into registry 23.368 transactions, that is by 59.2% more in comparison to 2012 but in terms of series adjusted seasonally, the rise is equal to 55.9%.

When it comes to type of housing, the sales of flats showed the highest appreciation in year-on-year terms (+55%), whilst the sales of single-family house purchase climbed by almost 80%.

Similarly, pre-owned house sales went up by 48.5% to 15.085 transactions, whereas new houses reached 2.717 operations that doubles the number of the units acquired a year before (+109%).

In case of flats, their price increased by 12.1% to 1.421 €/sqm and in regard to single-family homes the average price was set at 1.038 €/sqm, by 2.7% more than in January 2012.

Talking about mortgages, the statistics show that they also benefit from the improvement within the sector, in spite of the persisting fall in mortgage signing.

Loans reduced by 6%

Thus, the number of new mortgages signed in January represents 16.721 contracts (a 6% fall in year-on-year terms). The correction slightly goes up in reference to seasonal series (+6.2%). Average amount lent showes €122.449 that improves the performance by 8.2%.

Mortgages granted for property purchase reached 54% on year-on-year basis to 8.561 contracts, due to an increase in mortgage granting for house acquisition (+58.5%), while for the rest of properties it was of 19.9%. Continuing on topic of homes, average amount set at €113.966 euros (6% more). In turn, mortgages on construction went up by 36.8% to 224 new contracts for mean quote of €284.448 (-18.8%).

Finally, percentage of property purchases financed by a mortgage represented 33.3%. Moreover, average amount was equal to 73.9% of total value, more than in the previous months.

Original article: Expansión (Europa Press)

Translation: AURA REE

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