Tag: INE

Foreclosures On Homes Of Primary Residence Up 13,5%

23/12/2014 – Cinco Días

24.240 mortgage foreclosures over the third quarter

Between June and September, the number of homes of main residence foreclosed due to unpaid mortgage has gone up to 6,787 – 13.5% more than over the same period in 2013 but 29.4% less than in the previous quarter.

According to research published today by the National Statistics Institute (INE), looking at initiated foreclosures and new entries in the property registers, these foreclosures have increased by 10.5% up to 23,240, although they fell by 29.5%, when compared to the period from April-June in 2014.

Most of them, 22,135, were urban properties – 9.8% more than last year’s but 29.4% less than the previous quarter’s, while the remaining 1,105 were rural properties – 25.4% more than in 2013, although 30.4% less than between April and June this year.

13,741 or 59.1% of the total of urban properties were residential housing units, which translates into an increase of 11.7%, compared to 2013, but this is 28.3% less than in the previous quarter.

A total of 8,870 or 29.2% of them were owned by private owners (up 14.7%), while 4,961 or 21.3% by businesses (up 6.8% ), and 8.6% by private individuals.

Mortgage foreclosure is a measure which orders a mortgage-holder defaulting on their obligations to sell the real estate property, but judicial proceedings may lead to several outcomes of a foreclosure process and not all initiated foreclosures end with the release or eviction of the homeowners.

The spokesperson of the Spanish Banking Association (AEB) commented on the matter before Efe, pointing out that this is, to a large degree, due to the fact that banks have helped more than half a million families refinance their mortgage loans in order to adjust them to their current ability to pay.

Overall, the INE states that in the case of evicted private property owners, 77.3% were from their main residence address (up 13.5%), while another 1,993 were not (up 18.9%). Taking as a frame of reference the number of family dwellings in Spain during the third quarter (18,355,700), foreclosure proceedings were initiated over 0.0037% of them.

The real estate webpage, Pisos.com, has expressed its concern as in most of those cases the value of the property is lower than that of mortgage (i.e. having negative equity), which prevents it from being sold to pay off the debt, although it also points out that, though upturns are forecasted in the short run, particularly for housing bought before 2008, ‘’prospects are weakening” and figures will start declining in the medium term.

In terms of their condition, 16.4% were new homes and 83.6 % used ones, representing a decrease of 6.2% in the former and an increase of 16 % in the latter.

However, on a quarterly rate, these figures were lower 17.7 % and 30%, respectively.

19.2% of initiated foreclosures on homes corresponded to mortgages signed in 2007, while 17.2% – in 2006, and 12.5% – in 2005.

It was mortgages signed during the 2005-2008 period that mustered the highest number registered in a third quarter, amounting to 60.7%

From within urban properties, 3.6% more were evicted from other types of properties such as stores, garages, storage rooms, offices or warehouses, thus reaching 7,631 as well as 37.9% more from plots of land, more specifically, 1,033.

By autonomous regions, the highest number of mortgage proceedings were registered in Andalucia with 5,771; Catalonia with 4,066; and Comunidad Valenciana with 3,652; in contrast, the lowest were Navarra with 89; Cantabria with 151; and Asturias with 292. Andalucia was on the top of the list of evictions with 3,223, followed by Catalonia – 2,856, and Communidad Valencia – 2,241, while Navarra was the region which registered the fewest – 64, as well as Cantabria – 69, and the Basque Country – 84.

The INE highlights that 0.18% of all mortgages signed between 2003 and 2013 underwent foreclosure proceedings during the third quarter of 2014.

Original article: Cinco Días

Translation: Aura REE

INE: Home Values Growing in Six Regions, Three Quarters in a Row

12/12/2014 – Expansion

Average housing prices registered over the third quarter of the year went up 0.3% in year-on-year terms. This is the second consecutive rise after six months of continous fall, reports Spanish Official Statistics Institute (or INE), experts’ most trusted source of information. From January to September, the increase was of 1.6% from the same period in 2013.

The slight price rebound noted down in the third quarter is by 5 basic points lower than the Q2 figures (0.8%), mostly due to decrease in pace of new housing value rising, which from a 1.9% rate went down to 0.8%.

What do the numbers say about the residential market? ‘The data starts to portray a stabilization trend and that this year’s market is painted in totally different colours than it was in 2013′, Angel Serrano, Business Director at Aguirre Newman, pointed out.

The resales market, the most reliable one if it comes to measuring the pulse of the residential sector, is also levelling out. Pre-owned house prices increased by 0.1% in the third quarter, one bps less than in the previous quarter. Research Director at pisos.com, Manuel Gandarias, explains it as follows: ‘Second-hand homes still are being more discounted than the new units. For greater supply, purchasers have a wide margin to haggle the prices down‘.

Dwellings became more expensive in six out of the seventeen autonomous communities of Spain. While Andalusia showed absolutely no change, in other ten regions prices fell further into the red. Madrid took the lead in increase ranking with 2.8%, followed by Cantabria (2%), Murcia (1.5%), Catalonia (1.1%), the Valencian Community (0.9%) and the Balearic Islands (0.5%). The autonomous cities of Ceuta and Melilla also set their home values higher, by 1.4% year-on-year.

On the other end we find Navarre where dwelling units cheapened by 6.9% from the last year, Extremadura (down 4.6%), La Rioja (3.5%), Castille-La Mancha (3.2%) and Castille and Leon (2.8%).

The data supports the hipothesis that recovery would come asimetrically. ‘In some provinces and regions we start to see new property developments, whereas in other the adjustment process seems to take much more time due to their housing surpluses’, said Angel Serrano, ‘but the 2015 market will go completely stable’.

Mr Gandarias warned that ‘the statistics should be taken with a pinch of salt’, as ‘basing on the horrible 2013 figures inevitably leads to finding improvement but the real positive numbers are still on the way’.

 

Original story: Expansión (by Juanma Lamet)

Translation: AURA REE

INE: September Mortgage Lending Up 29.8% YoY

26/11/2014 – Expansion

During the month of September, 19.323 mortgages for home purchase were approved, going up 29.8% from September 2013. Moreover, average amount rose by 10.6%, according to the latest provisional data of the Mortgage Statistics department of the main statistics office of Spain (or INE by its acronym in Spanish).

Precisely, average borrowed amount reported to property registers showed €107.850, with the total capital shooting up by 43.5% year-on-year and totalling at €2.08 billion.

The INE reminds the data proceeds from public deeds effected in months previous to the reference month.

Together with the September advance, mortgage lending in Spain has linked four consecutive months of sharp upsurges, starting from June´s 19%, followed by July´s 28.8% jump and a 24% one in August.

From the eight month, approvals rose by 28.5%, marking the biggest advance in the last five years. In these terms, borrowed capital grew by 35.3%, highest since September 2010.

From January to September, the number of mortgaged homes declined by 3.2% from the same period in 2013, with a 0.5% decrease in borrowed capital and a 2.7% rebound in average loan amount.

As usual, Madrid with its 4.092 contracts, Andalusia with 3.301 and Catalonia with 2.777 take the lead among the Spanish regions. Only two of ‘the autonomous comminities’ registered slumps in new mortgage lending over 2013: the Canaries (down 21.3%) and La Rioja (5.2%), while the biggest y-o-y jumps were seen in Madrid (up 64.3%), Navarre (56.9%) and Asturias (49.5%).

Speaking of the total capital borrowed, Madrid performed best gathering €612.3 million, followed by Catalonia and its €330.4 million score and Andalusia with €296.9 million.

Interest rates averaged at 3.59%, compared with August 4.15%.

 

Original article: Expansión

Translation: AURA REE

House Sales Back on Upward Track Soaring 13.7% YoY in September

12/11/2014 – Cinco Dias

In September, the number of deals on homes increased 13.7% if compared to the same month 2013. Precisely, 27.024 houses were sold with an enormous jump in pre-owned properties’ popularity, reports the National Institute of Statistics (or the INE by its acronym in Spanish).

This year-on-year rise places the sales performance on the upward path again as August figures showed a 1.1% decline and 23.500 transactions in total.

Data compiled by the INE represents purchase deeds signed in the previous months but entered into property registries in the corresponding month.

Weighting up the month-on-month numbers only, it turns out that from August over September the sales shot up by 14.9%, marking the most acute rise in the last five years.

The year-on-year September increase owes to a 37.3% bumper in existing homes sales seeing 18.068 transactions in the said month. On the contrary, new housing suffered a 15.5% YoY fall and totalled at 8.956 operations.

Big part of the dwellings sold in the ninth month of 2014, 89.2%, refers to unsubsidized properties. This kind of houses were aquired by 13.2% more often than last year, precisely 24.096 times. When it comes to subsidized units, there were 2.928 deals, a 17.7% advance in comparison with September 2013.

In general and year-to-date, house sales in Spain accumulate a little drop of 1.4%, due to a reduced number of transactions on new properties (down 15%). In turn, the second-hand homes watched an increase of 10.2% in regard to the January-September term in 2013. Furthermore, subsidized dwellings sales underperformed 8%, and free market units 0.6%.

 

Original article: Cinco Días (after EP)

Translation: AURA REE

Spain August Mortgage Approvals Up 23.8% YoY

28/10/2014 – Expansion

Three months have already been marked by the upward path. In year-on-year terms, August mortgage approvals stood 23.8% higher than they did in 2013, data of the National Istititute of Statistics (the INE) showed. The sudden jump is slightly smoother than the July 28.8% upsurge.

Precisely, 15.040 new loans for home purchases were granted throughout August, and 18.107 contracts were signed a month earlier. This means a 16.9% decline in regard to July and the largest July-on-August slump in five years.

Experts foresee a acceleration in property sales at the end of the year caused by the taxation changes to come into force in 2015. Also, they belive the results of the Spanish banks from the stress test might give an impulse to new mortgages.

Average amount of an August mortgage showed €150.250, 24.7% more than in the same month in 2013. Home mortgages averaged at €102.430, up 5.8%, whereas the total equity lent amounted to over €1.54 billion, also up 5.8% year-on-year.

Accoding to the information provided by the official statistics office of Spain, 93.9% of August mortgages applied the floating interest rate, while the remaining 6.1% employed the fixed rate. Euribor benchmark was applied in most of the cases.

Interest rates for all-sort property purchase and terms averaged at 4.12% and 21 years respectively. Rates for homes only post lower, at 3.76%, situating ‘12.4% under the August 2013 figures’, the INE informs.

Other noteworthy numbers come from the statistics on subrogation operations. Creditor subrogations increased 7.9%, whilst debtor subrogations dropped 20.7%.

By Spanish regions, Andalusia approved most new mortgages in August (2.823 contracts), then Madrid (2.336) and Catalonia (2.049).

Solely two regions registered falls: La Rioja (down 40.9%) and the Canaries (down 15.5%). On the contrary, banks lent much more in the Balearic Islands (up 83.4%), Cantabria (up 68.4%) and Castille-La Mancha (up 57.6%).

Speaking of the average amount lent for home purchase, Madrid wins with a total of €371.8 million, followed by Andalusia (€259.8 million) and Catalonia (€223.3 million).

Manuel Gandarias, Research director at pisos.com, assures that ­’mortgage approvals advance at a fair pace in line with strict solvency requirements imposed by the financial entities. No doubt that they are more active, competing to offer best loans, fiddling with interest rates and forgetting about the controversial ground clauses‘.

In opinion of the head of Research at fotocasa.es, Beatriz Toribio, ‘in spite of better outlook for the Spanish mortgage market, new approvals still remain low and limited as banks target the new products exclusively at solvent customers who make around 2.000 Euros monthly’.

 

Original article: Expansión (by M. G. M.)

Translation: AURA REE

Why Are Housing Statistics Inconsistent?

18/09/2014 – Cinco Dias

The July real estate statistics document published by Spain‘s General Association of Notaries implies, that the seventh month of the year saw by 17.4% approved mortgages for home purchase more than in July 2013. Also, 31.973 properties were sold, representing a 9.8% year-on-year decline (7.5% corrected). What is more, in the Notaries‘ opinion, housing prices continue to drop, marking -10% in July.

However, last week the National Statistical Office of Spain (or INE) made public a report saying that property sales advanced by over 10% during that month and values increased 0.8% on year-on-year basis in the second quarter of 2014.

Are the data contradictory? Yes, and no. The reason for the obvious discrepancies is that each of the statistical information providers draws their data from different sources. The INE employs sales numbers from the property registers which refer to entries from the previous months, whereas the Notaries rely on their own database.

Another question is that whether it is possible for the mortgages to shoot up while home sales are descending. Well, it is, provided that during the recession over half of all the signed contracts did not require a mortgage loan, i.e. the properties were purchased in cash.

The slump in prices, limited access to financing and intensified saving in Spanish households allowed some to acquire a house without needing a mortgage. Now banks start to lend again, above all for their foreclosures acquistion, and even if their sales are not faring well, they have approved more mortgages.

In terms of prices, the reason is not so clear. Can values taper down one month and then go up the following? Yes, in line with the number of transactions sealed in each period of time and their development a year earlier. And if that was not enough, the Ministry of Public Works comes up with its statistics based on appraiser‘s data which represent the asking prices, not the final ones.

 

Original article: Cinco Días (by Raquel Díaz Guijarro)

Translation: AURA REE

Renting Becomes Cheaper With Every Month

16/09/2014 – El Mundo

Over the last 17 months, the owners of homes for rent have been asking for less and less from their tenants. In August, rental costs declined by 0.7% on the year-on-year basis and fell by 0.8% in month-on-month comparison, reports Spain‘s Office for Statistics (or INE).

The downward tendency has been checked with the Consumer Price Index (CPI) and the August result indicates a 0.5% fall in regard to the general rate.

On the other hand, the renting expense remained stable in monthly terms and year-to-date it showed a 0.5% decline.

By Spanish regions, tenants pay less in 15 of them in year-on-year development. Thus, the rental costs decreased most in Navarre (-2.2%), Murcia (-1.9%), Madrid (-1.6%), La Rioja (-1.4%), Castille-La Mancha (-1.1%) and Extremadura (-1.1%). They only went 0.1% up in Catalonia and Asturias.

In the rest of the regions, the landlords cut in prices by: 1% in Andalusia and the Valencian Community, by 0.9% in the Canaries, by 0.7% in Castille and León, by 0.6% in Cantabria and the Basque Country, by 0.3% in Aragon and the Balearic Islands and by 0.2% in Galicia. In turn, in Melilla the rents climbed slightly (+0.6%) and in Ceuta they depreciated by 0.5%.

 

Original article: El Mundo (after: Servimedia)

Translation: AURA REE

Housing Sales Climbing For Fifth Consecutive Month, Up 10.7% YOY in July

11/09/2014 – Cinco Dias

Property purchase went up by 10.7% in July, if compared with the same month 2013. Transactions during that month totaled at 28.583, driven by an impulse from the resale market, according to the latest update of the National Statistics Institute of Spain (or INE).

The year-on-year rebound in July links five consecutive months of positive development. Specifically, sales first shot up in March (+22%), then also in April (+5%), May (+5.4) and June (+8.8%).

Data compiled by INE corresponds to public deeds on purchases realized before the reference month. By analyzing the figures month-on-month, the home sales show a 9.6% appreciation after a 7.3% reduction in June.

The year-on-year increase in real estate acquisition statistics is a result of a 24.7% upsurge in used properties (18.082 deals). On the contrary, new housing declined by 7.2% year-on-year (10.501 operations).

 

Original article: Cinco Días

Translation: AURA REE

The National Institute of Statistics Confirms First Rise in Prices Since 2008

8/09/2014 – Expansion

Prices of unsubsidized housing in Spain increased by 0.8% in the second quarter of 2014 in comparison to the same period 2013. Thereby, they took up an upward path for the first time since Q1 2008. Year-to-date, the values rose by 1.4%. The data has been prepared with application of the Housing Price Index elaborated by the National Insititute of Statistics.

The figures registered in the first quarter of 2014 have already been reflecting a slowdown in the housing price slump that reached 12.6% throughout 2012, 14.3% in 2013 and then stood at 8%.

New homes appreciated by 1.9%, three bps above the Q1 data and this rate advanced for the first time since Q4 2008.

Used homes and apartments rebounded 0.2% (hitting the highest since Q4 2007) and went up by 2 basic points over the previous quarter. YTD, new units got by 0.8% more expensive, while existing ones by 1.5%.

Quarter-on-quarter (Q2:Q1), unsubsidized housing values rose by 1.7% after two consecutive quarters of falls (by 1.3% in Q4 2013 and by 0.3% in Q1 2014).

According to this source of information, all Spanish regions except for the Basque Country (-1.4% annually) have seen prices rising in the second quarter of 2014. The greatest increases have visited Murcia (+5.6 bps to 1.2%) and the Valencian Community (+4.9 bps to 2.3%).

In regard to the first quarter, 14 out of the 17 regions showed a positive change with best in the Valencian Community (+3.1%) and the Canaries (+2.8%). On the other end of the ranking, one may find the Basque Country (-0.9%) and Cantabria (-0.3%). In the Balearic Islands the values stagnated.

In quarterly terms, used housing leaves behind the new units due to its great supply volume but year-on-year, just the opposite happens.

Experts from the sector try to explain the phenomenon. First, Manuel Gandarias, research director at pisos.com, says it is due to major percentage of new homes in relation to used ones and greater room for negotiations in case of the latter. In turn, Fernando Encinar, his collegue from idealista.com, says the rise has been caused by the huge interest of small and medium-size investors in the Spanish real estate.

They see eye to eye when it comes to recovery: it is too early to celebrate it, they say, though there have been improvements in transactions, lending and pricing levels.

 

Original article: Expansión (by M. Castillo)

Translation: AURA REE

The Sale Homes Increases 8,8% In June

08/08/2014 – Expansión

The sale of homes has increased by 8.8% in June compared with the same month in 2013, reaching a total of 26.076 transactions, due to the boost of the second hand market, according to an announcement today by the Spanish Statistical Office (INE).

It is the fourth increase in a row after those experienced in March, April and May, when the sale of homes rose more than 22%, 5% and 5,4%, respectively, putting an end to ten consecutive months of year-on-year declines.

The figures published by the Spanish Statistical Office (INE) relate to sales recorded on the property registers based on deeds of sale from the months prior to that of the data.

Looking only at month-on-month data (comparing June with May), the sale of homes declined 7,3%. As for the year-to-date total (from January to June against the same period in 2013), a drop of 5,4% has occurred.

The year-on-year growth in the sale of homes has been due to the 17,4% increase in the sale of second hand homes, which have reached 16.257 transactions. On the other hand, the sale of new homes declined at a rate of 3% year-on-year, to 9.819 transactions.

The combined total, the number of homes registered as being transferred on the property registries (based on deeds of sale already finalised) in the month of June was 125.817, which represents 8,8% less than in the same month of 2013. In the case of the registered sales of homes, the number of transfers has reached 56.250, which represents an annual increase of 5,9%. The autonomous regions of Navarre, Aragon and Castille-Leon have the most activity. In June, the total number of transferred homes filed on the property registers for every 100.000 inhabitants reached the highest amount in Navarre (566), Aragon (536) and Castille-Leon (512).

The autonomous regions which have registered the highest inter-annual changes are Navarre (27,1%), the Balearic Islands (11,4%) and the Basque Country (10,9%). On the other hand, the one which has shown the lowest increases is Castilla.

Despite the improvement, analysts warn of the dangers of being overly optimistic. The head of studies at Idealista.com, Fernando Encinar, believes that this data “could lead to false expectations among sellers”, being based on a comparison with 2013 which was the worst year in the real estate sector.

Encinar believes that this data “could generate a greater resistance to lowering prices”, when the statistics also show a fall of 7,3% month-on-month after fewer homes than ever (9.819) were sold in June.

Meanwhile, the head of studies of Fotocasa.es, Beatriz Toribio, explains that the recovery of the property market will be slow and modest, given that although sales are slightly increasing and the fall of prices is slowing down, credit remains very limited and the labour market situation is still very complicated, which constrains the demand for homes from private individuals.

Original article: Expansión
Translation: Aura REE