Tag: property prices

Property Prices Decline by 2.9% in Q3

27/11/2014 – El Mundo 

Unsubsidized dwellings continue to cheapen, not as abruptly as they used to, though, when the slump repeatedly reached 10%. Accordig to data provided by the Ministry of Public Works, Spanish home price fell by 2.6% in the third quarter of 2014 from Q3 2013. To compare, in the second quarter the depreciation showed 2.9%. Currently, a residential square meter costs 1.455,8 euros on average.

From the second quarter, the price has stagnated (down 0.2%).

Considering the age of the properties, new house price (less than 2-year old) and the value of existing units practically coincides as first lost 2.9% and the other 2.6%.

 

Original article: El Mundo

Translation: AURA REE

Bankia Slashes Prices by 50% & Lists 5.000 Foreclosed Homes at Less Than €80.000 Each

27/11/2014 – Expansion

Bankia has just put up for grabs a selection of 5.000 dwellings across Spain at prices slashed by 50% and asking for less than €80.000 per unit.

The new campaign, including 6.000 properties in total, will be valid until December 31st.

Called the ‘Year-End Apartherapy’ (‘Pisoterapia fin del año‘), the offer may be consulted in Bankia branches network, as well as on the web of Haya Real Estate (www.haya.es), Spain’s leader in property management services that also trades REO assets of Bankia.

The property package is 100% made up from resales, of diverse type and representing both urban and coastal units, and including all large regional capitals, bedroom towns and little villages.

By regions, the Valencian Community concentrates 1.906 properties, followed by Catalonia (1.400), Andalusia (793) and Madrid (598).

Among the listed REO supply, one may find such gems as a two-bed, two-bath dwelling on the Barraca street in Valencia city which asks €80.000, half of its original value (€160.000).

In the province of Valencia, noteworthy are the following: a four-bedroom unit at a price trimmed from €145.400 to €80.000 in Torrent, a three-bed apartment in Pobla de Vallbona which now stands at €72.000 from previous list price of €114.200, or the one in Gandia, with three bedrooms and two bathrooms available from €52.500 and not €85.500 like before.

Alicante as a province offers, for example, a two-bed apartment in Algorfa priced €41.000, and €55.900 prior to the cut.

Skimming through Bankia’s bargains in Catalonia, a single-bed, two-bath duplex in Canet de Mar (Barcelona) certainly calls one’s attention as its current, €74.000 price is much more affordable than the previous list of €119.900.

Further on, also a detached, two-bed home in Castellet i la Gornal (Barcelona) costs significantly less as its asking price has shrank from €100.000 to €69.000.

In sun-drenched Andalusia, a three-bedroom dwelling in the city of Estepona (Malaga) worth €92.000 is available for €50.000 until December 31st.

In Madrid-nearby Fuenlabrada one may acquire a three-bedroom apartment whose price was slashed from €106.000 down to €80.000.

 

Original article: Expansión 

Translation: AURA REE

Kelisto.es Forecasts 1.4% Rise For Spanish House Prices in 2014

26/11/2014 – El Pais

Average price-tag of a home in Spain will stand at €157.717 at the end of 2014, up 1.4% from the previous year and marking the first rise since 2008, reports price comparison website Kelisto.es.

According to its latest update, the Spanish economy improvement may be beyond that growth, however mortgage lending for home purchase keeps on the downward track. From January to August, 134.082 loans were granted, hitting the lowest since the recession began.

In spite of that, the combination of rock-bottom prices and prospects of their rise over the next years seem to have an impact on sales to foreigners who already account for 16% of all purchases in Spain.

It is expected that in 2015 housing prices will average at €158.979 per unit, with biggest gains to be observed in Ceuta (4%), the Canaries (2%) and Aragon (2%).

During the years 2016-2016, the values are said to be slightly declining fueled by growth in the population number, its purchasing power and cost and access to financing.

Still, the real estate market has to digest available housing stock currently amounting to more than 560.000 dwellings, or even 740.000 if the REO assets in balances of banks and Sareb added up.

In such a context, no advance in lending is expected either. With a present record-low level of the Euribor rate (0.33%), in mid-term Spanish families would have to face an increased cost of their mortgages.

After three years of continuous cheapening, homes will start to get more expensive in 2019 or 2020. The turn in trend will be driven by a better balance between supply and demand once considerable part of the unsold stock absorbed and lending solidly reactivated, concludes Kelisto.es in its report.

 

Original article: El País (by Paula Cossío)

Translation: AURA REE

Statistics Providers Agree That Spanish Housing Goes Stable

19/11/2014 – Expansion

Sector’s observers find themselves snowed under statistics flowing from many sources which often are inconsitent or even contradictory. One one hand, the Notaries said yesterday the housing prices fell by 4% in the third quarter, and on the other, Property Registrars announced a rise of 1.15%.

Is the data reliable? Well, the most important is that they inform us about certain stabilization in the sector and there are many reasons for their divergence.

The methodology used by the sources varies as the notaries base on deeds, more set in the present, while registrars employ the repeat-sales price indice calculated over a two-month data offset (the time needed to complete all proceedings related to a sale). Appraisers usually use the comparative valuation method, and web portals focus on asking prices. As a consequence, they end up in disagreement.

Both the notary and the registry data, ‘although seemingly contradictory at first glimpse, they prove the cost of homes in Spain floats towards stabilization’, says Beatriz Toribio, Research director at portal fotocasa.es. ‘This doesn’t mean, though, that the slump is over. The values still have a long way down ahead in many areas of the country’, she adds.

Manuel Gandarias, Research chief at pisos.com, explains that ‘there are several months left, given that mortgage approval improves step by step, unemployment rate remains high, the Government may surprise us with the new taxation reform and in 2015 there will be the elections’.

When it comes to property sales, just the opposite happens: the notary data are more optimistic than the registries ones. ‘In the third quarter of the year, the purchases went up 8.6% from a year earlier’, assure the Notaries, while the Registrars say the rise was of 3.5%.

The latter claim the real estate market is currently utterly chopped and they see eye in eye with the Notaries on the matter of steadier monthly sales.

According to the Registrars, the advance was triggered by pre-owned home performance (52.127 units sold), practically doubling new properties’ sales (27.434). The Notaries agree that the first see an abrupt increase (up 31.8%), and the other sharp slump (down 32.8%).

Andalusia won in the transactions number with 16.006 deals, followed by the Valencian Community (12.189), Catalonia (11.975) and Madrid’s Community (10.883), say the Registrars, adding that foreigners accounted for 13.1% of the total, led by the British (18.06%), then the French (10.48%), Russians (7.5%), Germans (6.45%), Belgians (6.19%) and the Swedish (6.08%).

In reference to default on mortgages, the number of notices about home foreclosure initiation posted 13.421, by 5.500 (29%) less than in the second quarter.

Finally, both the Registrars and the Notaries attach information justifying why their data are more trustworthy.

 

Original article: Expansión (by Juanma Lamet)

Translation: AURA REE

Notaries: September Mortgages Up 49.7%, Sales Up 20.7% & Prices Down 2.9% YoY

18/11/2014 – El Pais, El Mundo

The General Council of Notaries has confirmed a rise in home sales which totalled at 26.778 units sold in the month of September, going 20.7% up in year-on-year terms. If the entire third quarter of 2014 considered, the y-o-y increase posts 8.6% but value drops by 4%.

As per the report, the jump is likely to be explained by the transaction number levelling-out after the end of tax deduction on home purchase at the end of 2012, but also by a certin stability in montly sales.

In September only, mortgage approvals skyrocketed by 49.7% (9.943 contracts in total). Average amount lent rose 4.5% to 111.004 euros, and the loan was enough to cover around 75.5% of the house value. In the third quarter, banks said ‘yes’ to 37.6% mortgagors more.

Deals on homes saw lower prices, though. In case of September home sales, a square meter was sold for 1.187 euros on average, down 2.9% y-o-y.

Existing property traded for 1.294 €/m2 (down 1.2% YoY), whereas new units sold for 1.510 €/m2 (down 3.7% YoY).

Detached homes cheapened most (down 6.8% YoY) and averaged at 969 €/m2 in 5.762 transactions.

From July to September, the sales swang from a 2.1% drop in July to upsurges of 16% in August and of 8.6% in September. The data corresponds to the information complied from the reference period, reflecting daily work of the notaries.

During that period, purchase of flats went up 19.5% with unsubsidized units witnessing a 17.8% YoY improvement. Second-hand homes were bought 31.8% more but the new sufferred a 32.8% loss in popularity. Single-family property sales went up 25.4%.

 

Original article: El País (Sandra López Letón), El Mundo

Translation: AURA REE

Registrars Say Housing Prices Steer Upwards in Q3

18/11/2014 – El Mundo

Popular repeat-sales ‘Case & Shiller’ Home Price Indice estimated by the Official Association of Property Registrars shows a 1.15% advance in the third quarter 2014 from a year earlier. In comparison with the previous quarter, the variation was practically null (down 0.08%). The figures prove a stable outlook for housing prices which fell 32.4% from their 2007 peaks.

Home sales also indicated positive development by reaching 79.561 transactions, up 1.40% over the second quarter, drifting away from the historic lows (72.560) registered in the fourth quarter of 2013.

The promising numbers originate exclusively from existing home sales that totalled at 52.127 units sold, a double of the new housing sales (27.434). In reference to the second quarter, 4.268 pre-owned properties changed hands, marking an 8.92% year-on-year rise, whereas new dwellings were picked by 10.36% less often on the same basis.

Among Spain’s regions, Andalusia sealed most deals (16.006), followed by the Valencian Community (12.189), Catalonia (11.975) and Madrid (10.883). In year-on-year terms, 313.607 purchases were registered, by 2.743 more than in the second quarter which neared to the historic series’ floor (310.864).

The third-quarter sales to foreigners accounted for 13.10% of the total (13.03% in the second quarter).

Traditionally, the British lead in the house purchase ranking with 18.06%, second ranking the French (10.48%), then Russians (7.50%), Germans (6.45%), Belgians (6.19%) and the Swedish (6.08%).

Default on Mortgages

According to information found in the Mortgage Default section, the number of default notices filed in the third quarter of 2014 stood at 13.421, dropping 5.500 (29.07%) from the second quarter (18.921).

The 64.25% of all notices was sent to natural and 35.75% to legal persons. Speaking of nationality of the mortgagor, 10.03% cases concerned foreigners and 89.97% Spaniards. Most initiated foreclosures were recorded in Andalusia (3.176), Catalonia (2.928) and the Valencian Community (2.113).

Mortgage Loans

The 85.36% of the third-quarter’s total of new loans for home purchase was approved by banks and savings banks, and 14.64% by other financial entities. Average mortgage debt stands at €104.078, up 2.49% over the previous quarter. Twelve regions averaged at less than €100.000.

Interest rates on the new mortgages have been declining for last two months. In the third quarter, they showed a mean of 3.60%. To compare, a quarter earlier they settled at 3.80%. Fixed rate was employed for 4.19% of all Q3 agreements, and the variable rate for 92.28% of them.

Terms tend to extend, increasing 2.37% (six months) from the second quarter and averaging at 22 years and 11 months.

In regard to the monthly payments, on average the borrowers had to amortize 556,34 euros (down 0.91% over Q2). Proportion with the income lowered to 29.54% from 29.82% in the second quarter.

 

Original article: El Mundo

Translation: AURA REE

Tinsa: October Home Prices Down 4.2%

14/11/2014 – El Economista

As per the latest update by appraiser Tinsa, average house pricing in Spain weakened 4.2% in October in comparison with the same month 2013. From the 2007 peaks, the slump accumulates a 41.4% depreciation.

The October decline equals to the September figure and both confirm the stabilization trend which sprouted out in mid-2013.

Specifically, home prices have been showing an around 4% year-on-year falls over the last months, less than half of what they pictured a year earlier (down 8.5%).

According to Tinsa, general ratio reduced only by 3.4% from January to October 2014, while the same time period in 2013 resulted in an 8.4% drop-off.

Down 2.2% in Main Cities

The October pricing levels in capital and other large cities of Spain have tipped the balance 2.2% downwards on year-on-year basis. All the five areas scrutinized in the study showed positive changes over time.

Furthermore, metropolitan areas (towns surrounding big cities) suffered a 3.4% y-o-y decrease in the tenth month, and in the Mediterranean coast zones houses cheapened by 4.5%.

They did most acutely in the Balearic Islands and the Canaries regions where the year-on-year rate showed a 5% depreciation. The remaining group, called ‘the rest of the municipalities’, saw prices dipping down 7.1% over October 2013.

On the other hand, the Mediterranean coast displays the deepest slump in prices since the 2007 cap, namely 48.6%. Similarly, capital and main cities post a 44.8% decline, and the metropolitan zones 44.1%.

Below-40% scores are found only in the rest of the municipalities (down 36.5%) and the Balearic and the Canary Islands (down 32.1%).

 

Original article: El Economista

Translation: AURA REE

Spanish Housing Worse Than Reported As 2013 ‘Black Hole’ Distorts Data

6/11/2014 – El Economista

We all know the real estate sector of Spain presents figures much better than in 2013. However, the problem lies in the fact that the previous year was exceptionally deppresive and odd and therefore the data may mislead. If 2014 compared with the 2012 performance, one may easily notice that the residential segment fares quite worse.

These are the findings published by Idealista News, which moreover assures that ‘the black hole the property market fell into in 2013 was a sinkhole which brought many to overvalue any positive information coming from the official statistics units causing an erroneous sensation that the worst is over’.

In 2013, a series of factors accumulated and cooked up ‘the perfect storm‘ for the residential sector. After the cancellation of the PIT deduction on the main home purchase, doubts about the future of the market, banks’ aversion to the risk and poor outlook for employment persisted.

What is more, Idealista News reminds that ‘the year 2013 was especially turbulent due to deep cuts carried out by regional authorities and city halls’.

Comparison with 2012

Analyzing the 2012 and 2014 figures, the portal reports that in August 2014, 23.525 homes were sold (data by the National Institute of Statistics, INE), by 15.1% less than in the same month in 2012. Likewise, mortgage approvals in July this year posted 25.5% lower than they did in 2012.

When it comes to prices, depending on the sources (the Ministry of Public Works, INE or Idealista), the year 2014 registers a slight decline (up to 4.4%) or even rise on year-on-year basis. However, if compared to 2012, the fall marks between 9.2% and 14.3%, with no trace of rebound.

‘There is no doubt we have the recession rather behind than ahead, but the conclusion that the market is being improving taking solely the few indicators as a reference is not only wrong, but even hazardous. (…) We have managed to take the real estate out from the intensive care ward but we stay on the same floor as before we reach a balance, still many adjustments are left to be made’, claims Idealista News.

 

Original article: El Economista 

Translation: AURA REE

The Bank of Spain: RE Market Development Conditioned by Economy, Lending & Stock

5/11/2014 – Idealista

In its latest update on the financial stability of the country, Spanish central bank states the real estate market is very close to full adjustment. The entity says the future change of the prices will largely depend on Spain’s economic performance, lending and pace of absorbing the present unsold housing stock.

Citing the data published by the Ministry of Public Works, the Bank of Spain reminds that at the end of 2013, the stock represented more than 560.000 units. During that year, only 3% of the total was absorbed and around 13% of the 2009 peak.

Good news is that demand for homes ‘shows a certain improvement’, though ‘far away from the upper levels seen during the boom’.

When it comes to prices, the central entity says that since the 2007 peaks, they fell by 30-40%. As per its report, the adjustment took place in two phases (2008-2009 and 2011-2013), ‘aligned with the twofold recession in Spain’.

The Bank of Spain assures that the most important market indicators started ‘to confirm a significant slowdown in the sector’s slump’. It supports the statement with the following arguments: home sales stabilization, advance in mortgage approvals and building permits issuance, as well as moderation in the abrupt price decline.

 

Original article: Idealista

Translation: AURA REE

Tinsa: Six Main Cities See House Values Rising

5/11/2014 – Expansion

Spanish housing market is at a turning point. Prices have already gone up in six regional capitals, nine provinces and three regions, in the third quarter of 2014, appraiser Tinsa informs. On  year-on-year basis, homes depreciated 4.3%.

Precisely, a House Price Index (HPI) for local markets elaborated by the firm called ‘Tinsa IMIE Mercados Locales’, has been reflecting pricing stabilization since the second half of 2013. ‘The 9.3% adjustment registered in the third quarter of 2013 has shrunk to 4.3% year-on-year’, the report states.

In accordace with the company’s estimates, the indice has dipped down by 40.3% since its Q4 2007 peak.

Price development varied in each city, province and region. For example, in six provincial capitals values jumped up in Q3 2014 when compared to the same period of time a year earlier. Namely, house prices rose in Teruel (3.8%), Zaragoza (up 2.1%), Malaga (1.7%), Pontevedra (1.6%), Caceres (0.6%) and Barcelona (0.1%). On the other side of the ranking position Salamanca with further, 15.9% depreciation and Segovia with a 15.1% slump.

While analyzing provincial data, one may easily notice a wide pricing gap. Thus, Segovia, the Autonomous Region of Navarre and Jaen lead in the top y-o-y decline ranking with 14.1%, 13.9% and 13.5%, respectively. In others, values increased by more than 5%, most in La Coruña (up 8.4%), Huesca (5.7%) and Badajoz (5.3%).

Finally, regional scores were even more divergent. In some, like Navarre or Asturias, prices are still heading down, while in others they have already bottomed-out. The two regions show falls of 13.9% and 9.6% respectively, followed by Castille and Leon (down 9.1%), the Canary Islands (7.4%), the Valencian Community (6.8%) and Andalusia (6.2%). Year-on-year rebounds are found only in Extremadura (5.6%), Galicia (up 1.9%) and La Rioja (0.4%).

 

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

Translation: AURA REE