Mortgage Default Rate Drops To 4.73% In June

19 October 2017 – Expansión

The default rate on loans granted to buy homes decreased from 4.79% to 4.73% in June, whilst the default rate in the property developer and real estate sector fell from 24.12% to 21.47%. These figures represent the lowest levels recorded since December 2011.

Original story: Expansión

Translation: Carmel Drake

Tinsa: House Prices Rose By 5%+ In Cataluña In 2015

19 January 2016 – Expansión

With an increase of more than 5%, Cataluna was the autonomous region where house prices rose the most in 2015, which saw the first nationwide increase since 2008. Specifically, according to data published by the appraisal company Tinsa, new and second-hand house prices rose by 1% in Spain last year; with the Community of Madrid and the Balearic Islands also helping to drive that increase, with rises of 3.3% and 2.7%, respectively.

The Catalan provinces reported the greatest increases. Most notably, prices rose in Gerona by more than 10%. In addition, prices in Barcelona and Lérida increased by 5%, whilst in Tarragona, the only province in the region where prices did not rise, they dropped by -1.7%. Significant increases were also recorded in other provinces, besides those mentioned above in Madrid and the Balearic Islands – they included Albacete (4.5%), Ávila (2.4%), Orense (2.2%) and Castellón (2.1%). Similarly, prices in Cuenca, Huelva, Toledo, Cádiz, Málaga, Cantabria, Salamanca, Alicante, Granada, Las Palmas and Santa Cruz de Tenerife rose in line with the national average, all recording increases of around 1%

At the other end of the spectrum, and in contrast to the behaviour seen in the other autonomous regions, house prices in Navarra dropped significantly, by -8.5% YoY. Prices also fell sharply in Murcia, by -4.5%, whilst in Aragón and Extremadura, prices fell by -3.6% and -3.4%, respectively. Meanwhile, prices in País Vasco dropped by -2% and in Asturias, the Community of Valencia and Galicia, prices fell by more than -1%.

In this context, house prices fell by the most in the province of Teruel: specifically, by -8.7%. Moreover, the decrease in Córdoba amounted to -7.7%, whilst in Palencia prices dropped by -7.1%, in Álava by -6.5% and in Zamora by -5.9%. Notable price decreases were also recorded in Ciudad Real, Almería, Burgos, Cáceres and León, where they dropped by more than 4%.

Tinsa’s IMIE index for the fourth quarter of 2015 also includes the behaviour of prices in cities: the ranking was headed by Barcelona, where prices rose by 8.7%. The second city was Badajoz, with an increase of 5.7%, and that was followed by Ávila, where the increase reached 4.3%. Prices in the capital of Spain rose by 3.8% and price rises of more than 3% were also recorded in Cuenca and Ciudad Real. In Palma de Mallorca, prices rose by 2%, in Segovia they increased by 2% and prices in Burgos, Málaga and Cádiz all rose by more than 1%.

The provincial capitals where prices decreased the most were Pamplona and Palencia, with a decrease of more than -10% in both cases. In Zamora, prices fell by -9.2%, whilst in León, they dropped by more than -8%. Huesca, Tarragona and Castellón all recorded price decreases of -7%, and prices in Vitoria fell by almost the same amount. In Murcia and Almería, prices dropped by more than -6% and in Zaragoza, Vigo and Lérida, prices decreased by between -4% and -3.2%.

Original story: Expansión (by Daniel Viaña)

Translation: Carmel Drake

Notaries: House Sales Up By 1.9% In April To 30,758

16 June 2015 – El Economista

House sales increased by 1.9% in April, with 30,758 transactions, whilst the average price of properties sold decreased by 3.9% to €1,188/m2, according to data from the General Council of Notaries, published on Monday.

These percentage changes reflect a moderation with respect to the increase recorded in sales in March (+12.3%), as well as the drop in prices observed during that month (-7.5%). According to the same source, house prices have accumulated a total decrease of 37% with respect to the peaks reached in 2007.

By type of property, the sale of flats increased by 1.3% in April in YoY terms. In the free (unsubsidised) market, the increase was 1.1%. The rise in the number of flats sold was driven by an increase in the sale of second-hand homes (+5.9%), which more than offset the decrease recorded in the sale of new flats (-27.3%). Meanwhile, the sale of family homes increased by 4.2% in April.

In terms of prices, on average, flat prices decreased by 3.2%, with the price of second-hand flats falling by 3.3% and new flat prices increasing by 2.7%. Meanwhile, the price of houses (chalés) decreased by 2.9%.

During the fourth month of the year, the sale of other types of properties decreased by 9.1% to amount to 6,987 operations, of which 37.7% related to land and plots. The average price per square metre of these transactions was €123, i.e. 18.4% lower than in April 2014.

According to the same source, the evolution of the mortgage market for the acquisition of homes reflects the stabilisation observed in the real estate sector, “with an increase in total credit”.

Thus, in April, 12,716 mortgage loans were granted for the purchase of homes, i.e. 12.3% more, for an average amount of €122,199, i.e. 13.1% more. The percentage of home purchases financed using a mortgage loan was 41.3%.

Original story: El Economista

Translation: Carmel Drake

Tinsa: House Prices Decreased By 3.67% In February

12 March 2015 – 20 Minutos

House prices have recorded an average cumulative decrease of 42.6% since the end of 2007.

Homes on the Mediterranean Coast have lost more than half their value.

Prices may bottom out in the next few months.

In areas with low demand and significant stock, further price decreases are expected.

A change in the real estate cycle has begun; but since it is a cycle, the changes will not happen overnight. In this way, although prices are now rising in some areas of Spain, in many others, they are still declining and those areas are, for the moment, in the majority.

According to data published by Tinsa, house prices fell by 3.67% in February with respect to the same month in 2014. On the Mediterranean Coast, homes have lost more than half of their value due to the crisis, but prices may bottom out in the next few months.

With respect to the peak prices recorded at the end of 2007, house prices have recorded a cumulative decrease of 42.6%, according to the index prepared by Tinsa. On the Mediterranean Coast, the decrease has been much more pronounced, according to the appraisal company, which highlights that in this region, the cumulative decrease during the crisis has amounted to 51.1%.

In February, house prices decreased by 4.9% and 4.4%, respectively, in large cities and metropolitan areas. Since the peak of the cycle, capitals and large cities have recorded a cumulative decrease of 46.5%, whilst metropolitan areas have experienced a cumulative reduction of 45.5%.

By contrast, the Balearic Islands and Canary Islands recorded a year-on-year increase of 0.7% (in Feburary), whilst on the Mediterranean Coast, the decrease was 4.7%. From the peak levels recorded before the crisis, house prices on the islands have decreased by 32.4%.

In the towns included within “other municipalities”, the decrease in February with respect to the same month in 2014 was 2.1% and since the peak, was 36.1%.

Optimistic forecasts?

Tinsa notes that average house prices began a stabilisation process in 2013, characterised by a moderation in the rate of decline in average prices. “If the optimistic forecasts that various official bodies are predicting for economic growth and employment are fulfilled, then average prices in Spain may bottom out in the next few months”, says the company.

However, it warns that this forecast does not exclude the fact that in localised markets, where demand is particularly weak and there are significant levels of stock, (downwards) adjustments are still expected and there may yet be significant year-on-year decreases.

Original story: 20 Minutos

Translation: Carmel Drake

Rental Prices Fall Again In January By 0.6%

16 February 2015 – Cinco Días

Navarra, Murcia and La Rioja recorded the most significant decreases.

Rental prices decreased again in January by 0.6%, i.e. by a tenth of a point less than in the previous month, representing almost half of the general index (-1.3%) and almost two consecutive years of cumulative decline, according to data published today by the National Institute of Statistics (el Instituto Nacional de Estadística or INE).

By autonomous region, the main decreases were recorded in Navarra (-1.9%), Murcia (-1.8%), La Rioja (-1.8%), Valencia (-1.4%), Madrid (-1.4%), Pais Vasco (-1%), Andalucía (-0.8%) and Castilla-La Mancha (-0.8%). Reductions were also observed in the Canary Islands (-0.3%), Cantabria (-0.3%), Aragon (-0.3%), Asturias (-0.2%), Extremadura (-0.3%), Galicia (-0.3%), Ceuta (-0.3%) and Castilla y León (-0.2%), although these were below the average recorded. Rental prices remained stable in the Balearic Islands and increased only in Melilla (+0.9%) and Cataluña (+0.1%).

On the other hand, house maintenance costs increased by 0.7% year-on-year, i.e. by two percentage points more than the overall rate and were virtually unchanged with respect to the end of 2014.

Original story: Cinco Días

Translation: Carmel Drake