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Notaries: September Mortgages Up 49.7%, Sales Up 20.7% & Prices Down 2.9% YoY

18/11/2014 – El Pais, El Mundo

The General Council of Notaries has confirmed a rise in home sales which totalled at 26.778 units sold in the month of September, going 20.7% up in year-on-year terms. If the entire third quarter of 2014 considered, the y-o-y increase posts 8.6% but value drops by 4%.

As per the report, the jump is likely to be explained by the transaction number levelling-out after the end of tax deduction on home purchase at the end of 2012, but also by a certin stability in montly sales.

In September only, mortgage approvals skyrocketed by 49.7% (9.943 contracts in total). Average amount lent rose 4.5% to 111.004 euros, and the loan was enough to cover around 75.5% of the house value. In the third quarter, banks said ‘yes’ to 37.6% mortgagors more.

Deals on homes saw lower prices, though. In case of September home sales, a square meter was sold for 1.187 euros on average, down 2.9% y-o-y.

Existing property traded for 1.294 €/m2 (down 1.2% YoY), whereas new units sold for 1.510 €/m2 (down 3.7% YoY).

Detached homes cheapened most (down 6.8% YoY) and averaged at 969 €/m2 in 5.762 transactions.

From July to September, the sales swang from a 2.1% drop in July to upsurges of 16% in August and of 8.6% in September. The data corresponds to the information complied from the reference period, reflecting daily work of the notaries.

During that period, purchase of flats went up 19.5% with unsubsidized units witnessing a 17.8% YoY improvement. Second-hand homes were bought 31.8% more but the new sufferred a 32.8% loss in popularity. Single-family property sales went up 25.4%.

 

Original article: El País (Sandra López Letón), El Mundo

Translation: AURA REE