INE: The Number of Mortgage Signings Soared by 34% YoY in April

27 June 2018 – Expansión

The number of mortgages constituted over homes in Spain amounted to 28,724 in April 2018, which represents an increase of 34.2% compared to the same month in 2017.

According to data published today by Spain’s National Institute of Statistics (INE), the increase with respect to the month of March was 9%. In terms of the cumulative numbers so far this year, the increase amounts to 11.6%.

Meanwhile, the capital loaned rose by 46.5% in April 2018, compared to April last year, to €3.5 billion. Moreover, the average amount loaned in April of this year amounted to €123,256, up by 9.1% in YoY terms.

By nature of property, mortgages constituted over homes accounted for 64.7% of all the capital lent in April.

For mortgages constituted over homes, the average interest rate in April 2018 was 2.67% (16.7% lower than in April 2017) and the average term was 24 years. 60.6% of mortgages over homes were constituted at floating rates and 39.4% at fixed rates. Fixed rate mortgages experienced a 30.7% increase in YoY terms.

The average interest rate at the beginning of a mortgage term is 2.42% for floating rate mortgages over homes (a decrease of 22.3%) and 3.15% for fixed rate mortgages (6.1% lower).

Fernando Encinar, Head of Research at Idealista, considers that the “significant increase in the volume of mortgages registered in April with respect to last year should be adjusted for the effect of Easter, although even taking the sum of March and April in both years, the increase is still a healthy 12%”.

According to him, “the banks are still willing to grant mortgages, they are opening their hands slightly, but they are not the motors behind the rise in house sales. Fixed rate products are rising slightly with respect to floating rates, and so are the prices of them, undoubtedly the result of more expensive financing. Even so, more mortgages are still being repaid than registered”.

For Ferran Font, Head of Research at pisos.com, these data confirm “that in March, we were not looking at a change in trend, but rather the effect of Easter, which fell in April in 2017. That percentage strengthens the growing trend in recent months, after a month of negative YoY growth”.

By region, the autonomous regions with the highest number of mortgages constituted over homes in April was the Community of Madrid (6,018), Andalucía (5,154) and Cataluña (4,700).

Meanwhile, the highest YoY variation rates were recorded in the Balearic Islands (66.7%), the Community of Madrid (62.4%) and Castilla-La Mancha (54.2%).

The autonomous regions where the most capital has been loaned for the constitution of mortgages were the Community of Madrid (€997.9 million), Cataluña (€708.1 million) and Andalucía (€531.8 million).

In total, 40,005 mortgages over properties were signed in April, up by 36.5% with respect to a year earlier. Of the total, 1,350 corresponded to rural properties (+21.4%) and 38,655 to urban assets (+37.1%).

Original story: Expansión 

Translation: Carmel Drake

The Price of New Housing Rose 12.7%

 

15 August 2017

New construction is starting to reappear. The price of new free-market housing recently increased by 12.7% in the twelve months to June, according to data released yesterday by the General Council of Notaries. While the average price per square meter was 1,816 euros in June 2016, in the same month this year the price was up to €2,047. The average cost per square meter of second-use homes stood at 1,478 euros, 0.8% more year-on-year. This caused the increase in the combined index of free-market residential properties to be limited to 1.9%.

In terms of average costs, the square meter of homes purchased in June cost 1,358 euros, according to the report, reflecting an increase of 1.4% year-on-year. This increase in the cost per square meter of housing is due exclusively to the increase in the price per square meter of flats, as the square meter of single-family homes fell by 0.1% year-on-year.

The purchase and sale of housing stood at 51,477 transactions in June, representing a year-on-year increase of 17.4% (16.8% in the seasonally adjusted series).

The sale of flats showed a year-on-year increase of 18.1% (17.1% in the seasonally adjusted series), due both to the expansion of sales of second-use flats (19%) and an increase in the sale of new flats (10.8% year-on-year). The sale of single-family homes showed a 14.8% year-on-year increase.

Finally, in June, there were 12,176 transactions of other types of real estate, an increase of 21.4% year-on-year, of which 41.2% corresponded to land or plots of land. The average price per square meter of these transactions stood at 207 euros (13.6% year-on-year).

Mortgage loans for the purchase of real estate increased by 12.2% year-on-year to June (25,016 mortgages). The General Council of Notaries explained that the total increase in mortgages can be divided into an increase in loans granted for the purchase of a home (12.9% year-on-year) and the increase in mortgages for the acquisition of other types of real estate (3.4% year-on-year).

The size of the average mortgage granted for the acquisition of real estate, in June, reached 135,234 euros, a decrease of 6.9% compared to the same period of 2016.

Creation of new companies

On the other hand, there were 8,720 new companies incorporated in June, a year-on-year decrease of 18% (-18.8% in the seasonally adjusted series).

The average share capital of companies incorporated in June stood at 18,837 euros, which represents a year-on-year increase of 15.6%, according to statistics from the General Council of Notaries.

Original Story: Expansión Pro-OrbytJ. M. Lamet

Translation: Richard Turner

INE: Mortgage Lending Increased By 10.9% In May

29 July 2015 – El Economista

According to the National Institute of Statistics (INE), the number of mortgages granted over homes recorded in the property registers amounted to 19,732 in May 2015, up by 10.9% from the same month in 2014. This data is sourced from public deeds signed in previous months.

With the YoY increase to May, residential mortgages recorded twelve consecutive months of two digit increases. Nevertheless, the rise in May was ten points lower than the one seen in April, when the number of residential mortgages increased by 21.4%.

The average size of a residential mortgage amounted to €103,922 during the fifth month of the year, up by 4.4% from the same month in 2014. Meanwhile, the total amount of capital loaned increased by 15.8% in YoY terms to exceed €2,050 million.

In monthly terms (May versus April), the number of mortgages increased by 4.6%, the lowest rise in five years, whilst the volume of capital loaned grew by 8%, compared with an increase of 14% one year ago.

During the first five months of the year, the number of residential mortgages signed increased by 20.1% with respect to the same period in 2014, with a 24% increase in the total amount of capital loaned and a 3.3% rise in the average mortgage amount.

Andalucía leads the ranking

By region, the autonomous communities that recorded the highest number of new residential mortgages in May were: Andalucía (3,717), Madrid (3,378) and Cataluña (3,085).

During the fifth month of the year, the regions that recorded the highest YoY variations in the number of new residential mortgages were: La Rioja (+43.4%), Navarra (+31.8%) and Galicia (+26.8%).

Meanwhile, the regions that loaned the most capital for the constitution of mortgages were: Madrid (€496.3 million), Cataluña (€371.4 million) and Andalucía (€323.4 million).

Mortgages increase over all properties

According to data from the statistical body, 29,712 mortgages were constituted over rural and urban properties (including homes) during the fifth month of the year, which represents an increase of 7.3% with respect to May 2014.

The capital of the mortgage loans granted increased by 15.1% with respect to the same month in 2014, to €3,736.8 million, to the extent that the average amount of the mortgages constituted over all properties amounted to €125,802, up 7.3% from May 2014.

The average interest rate for residential mortgages was 3.40% in May, compared with 3.82% a year earlier, whilst the average interest rate for all properties was 3.38%, with an average term of 21 years.

Mainly variable interest rate mortgages

Finally, 92.8% of the mortgages granted in May had variable interest rates, compared with 7.2% that had fixed rates. Euribor was the most commonly used reference rate, and featured in 92.2% of the new contracts signed. (…).

Original story: El Economista

Translation: Carmel Drake