Notaries: House Sales Up By 8.4% In May & Prices Down By 2.5%

16 July 2015 – El Economista

According to data from the General Council of Notaries, 33,504 homes were sold in Spain in May 2015, representing an increase of 8.4% YoY.

Sources at the General Council of Notaries stressed that despite the fluctuations in the monthly figures, the trend reflects a recovery in sales.

By type of home, sales of flats increased by 8.1% YoY and sales of unsubsidised flats increased by 8.8% YoY. This increase in the number of flats sold was driven solely by a rise in sales of second-hand flats (up 14.5% YoY), since sales of new homes experienced a sharp decrease (-21.5% YoY). Meanwhile, sales of single family homes increased by 9.6%.

In terms of average prices, the price per square metre of homes purchased in May was €1,226, reflecting a decrease of 2.5% YoY. This decrease in the price per square metre of homes was driven by decreases in the price per square metre of both flats and single family homes, which decreased by -2.2% and -2.3%, respectively, YoY.

In the segment for flats, the price of second-hand properties averaged €1,339/m2 (-0.4% YoY) and the price of new homes equalled €1,505/m2 (-10% YoY).

Finally, 8,285 other properties were sold in May (+11.3%), of which 38.2% related to land or plots. The average price per square metre of those transactions amounted to €127/m2 (+37.9% YoY).

Meanwhile, the evolution of the mortgage market for the purchase of homes reflects the recovery observed in the real estate sector, registering an overall increase in the total debt balance.

Thus, 25,738 new mortgage loans were granted in May, which represents a YoY increase of 11.5%. The average amount loaned was €137,093, reflecting an increase of 7.7% YoY.

Original story: El Economista

Translation: Carmel Drake