Registrars Say Housing Prices Steer Upwards in Q3

18/11/2014 – El Mundo

Popular repeat-sales ‘Case & Shiller’ Home Price Indice estimated by the Official Association of Property Registrars shows a 1.15% advance in the third quarter 2014 from a year earlier. In comparison with the previous quarter, the variation was practically null (down 0.08%). The figures prove a stable outlook for housing prices which fell 32.4% from their 2007 peaks.

Home sales also indicated positive development by reaching 79.561 transactions, up 1.40% over the second quarter, drifting away from the historic lows (72.560) registered in the fourth quarter of 2013.

The promising numbers originate exclusively from existing home sales that totalled at 52.127 units sold, a double of the new housing sales (27.434). In reference to the second quarter, 4.268 pre-owned properties changed hands, marking an 8.92% year-on-year rise, whereas new dwellings were picked by 10.36% less often on the same basis.

Among Spain’s regions, Andalusia sealed most deals (16.006), followed by the Valencian Community (12.189), Catalonia (11.975) and Madrid (10.883). In year-on-year terms, 313.607 purchases were registered, by 2.743 more than in the second quarter which neared to the historic series’ floor (310.864).

The third-quarter sales to foreigners accounted for 13.10% of the total (13.03% in the second quarter).

Traditionally, the British lead in the house purchase ranking with 18.06%, second ranking the French (10.48%), then Russians (7.50%), Germans (6.45%), Belgians (6.19%) and the Swedish (6.08%).

Default on Mortgages

According to information found in the Mortgage Default section, the number of default notices filed in the third quarter of 2014 stood at 13.421, dropping 5.500 (29.07%) from the second quarter (18.921).

The 64.25% of all notices was sent to natural and 35.75% to legal persons. Speaking of nationality of the mortgagor, 10.03% cases concerned foreigners and 89.97% Spaniards. Most initiated foreclosures were recorded in Andalusia (3.176), Catalonia (2.928) and the Valencian Community (2.113).

Mortgage Loans

The 85.36% of the third-quarter’s total of new loans for home purchase was approved by banks and savings banks, and 14.64% by other financial entities. Average mortgage debt stands at €104.078, up 2.49% over the previous quarter. Twelve regions averaged at less than €100.000.

Interest rates on the new mortgages have been declining for last two months. In the third quarter, they showed a mean of 3.60%. To compare, a quarter earlier they settled at 3.80%. Fixed rate was employed for 4.19% of all Q3 agreements, and the variable rate for 92.28% of them.

Terms tend to extend, increasing 2.37% (six months) from the second quarter and averaging at 22 years and 11 months.

In regard to the monthly payments, on average the borrowers had to amortize 556,34 euros (down 0.91% over Q2). Proportion with the income lowered to 29.54% from 29.82% in the second quarter.


Original article: El Mundo

Translation: AURA REE