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Sales of Pre-owned Houses Advancing for Second Month, Prices Keep Dipping

Statistics of the Offical College of Notaries (…) make the situation on the real estate market clear: sales drop by 8.9% and the price falls by 10.5% in year-on-year relation – data from October shows 1.204 €/m2.

Nonetheless, the notaries claim that “a slight stabilization in number of monthly sales could be observed, but last two months of the year raise uncertainty after the upturn in transactions during the same period in 2012, before the fiscal changes which took effect in the exercise. That is to say, the fall could be tremendous after ´call effect´of the elimination of the deduction in IRPF, due to the first house purchase and rise of VAT”.

It is worth to note that the pre-owned houses´ purchase shot up (3.9% year-on-year, the secod consecutive month) while the new houses´ sales broke (-37.5%). (…) The second hand houses – private and the ones belonging to banks – fell by mere 1.3% comparing to the residential property less than 2 years old´s drop-off by 18.8% (it is considered new).

On the other hand, the number of new mortgage loans granted in October reduced by 22.5% year-on-year and their average cost of capital by 5.2%. In case of the mortgage loans granted for a house purchase, the new loan went down by 16.5% and the capital by 1.4%.

Finally, the Formation of Companies registered a year-on-year runup of 5.6%  in October, while their average social capital dwindled by 1.1% down to 18.501  Euros.

Source: Expansión