1 April 2019 – El Confidencial
On average, families and individuals in Spain own their homes for 14 years and 8 months, almost double the figure reported in 2009, a year after the burst of the real estate bubble. According to data from the College of Registrars, the average ownership period recorded in 2018 is the longest in the historical series and reflects the fact that purchase decisions nowadays are more prudent and less speculative.
Specifically, 70% of homeowners have not sold their home for almost fifteen years, whilst 80% have owned their homes for more than 8 years. Meanwhile, just 10% of homeowners buy and sell their home within five years.
Moreover, the data reveals that second-hand homes accounted for 82.5% of all transactions in 2018, compared with new homes, which accounted for the remaining 17.5%. At the height of the crisis, the two types were almost on a par. Both of these data are positive for the real estate sector as a whole because they are allowing more sustained growth.
The other major finding to emerge from the Registrars’ data relates to the economic effort that families have to make to buy a home. The mortgage payment over salary percentage was 29.7% in 2018, with higher rates in Madrid (35%) and Cataluña (33%). According to experts, that figure should not exceed 30% if households are to have enough to cover their other expenses. What’s more, the ideal percentage is between 20% and 25%.
Original story: El Confidencial (by E. Sanz)
Translation/Summary: Carmel Drake