INE: House Sales Rose By 26.9% In March

22 May 2017 – El Confidencial

House sales rose by 26.9% in March with respect to the same month in 2016, to reach 40,461 operations, the highest figure since February 2011, according to figures compiled by Spain’s National Institute of Statistics (INE).

This increase, which marks 14 consecutive months of YoY increases, is much higher than the rise recorded in February when operations increased by just 1.2% in YoY terms.

Transactions involving second-hand homes rose by 28.3% in March with respect to the same month in 2016, to reach 33,100, a level not seen since September 2007. Meanwhile, sales of new build properties rose by 21.2% in YoY terms, to reach 7,361 transactions, the highest figure since February 2016.

89.8% of the homes sold during the third month of the year were private (unsubsidised) properties and 10.2% were protected (social housing). Sales of private homes rose by 27.6% in March in YoY terms, to reach 36,332 transactions, meanwhile, operations involving social housing properties grew by 21.5%, to 4,129 transactions.

In monthly terms (March compared with February), house sales soared, by 13.6%, their highest increase in the month of March for at least five years.

In March, the greatest number of house sales per 100,000 inhabitants by region was recorded in the Community of Valencia (150), followed by the Balearic Islands (148) and Andalucía (121). The latter was also the autonomous region where the most (absolute) house sales were recorded during the third month of the year, with 7,976 transactions, followed by Cataluña (6,832), the Community of Valencia (5,854) and Madrid (5,684).

Original story: El Confidencial 

Translation: Carmel Drake

INE: House Prices Rose By 4.7% In 2016

8 March 2017 – Expansión

House prices rose by 4.7% on average in 2016 with respect to the previous year, their third consecutive annual increase following six years of decreases and the highest rise since 2007, according to the House Price Index (IPV) published today by Spain’s National Institute of Statistics (INE).

By house type, second-hand house prices rose by 4.4% in 2016, to register their highest increase since 2007. In the case of new homes, average prices rose by 6.5% in 2016, also recording their highest rise since 2007.

During the fourth quarter of 2016, private (unsubsidised) house prices rose by 4.5% with respect to the same quarter in 2015, whereby increasing the YoY rise recorded in the third quarter (+4%) by half a point. In this way, house prices recorded eleven consecutive quarters of positive YoY variations.

New house prices rose by 4.3% in Q4 2016 compared to the fourth quarter in 2015, in other words, by three points less than during the previous quarter, whilst second-hand house prices rose by 4.5%, one point above the increase recorded in the previous quarter.

In inter-quarterly terms, private (unsubsidised) house prices rose by 0.4%, in other words, by four tenths less than in the previous quarter. Following this quarterly increase, house prices recorded four consecutive quarters on the rise.

House prices rose last year in every single one of Spain’s autonomous regions, as well as in the cities of Ceuta and Melilla. The most marked price increases were observed in Madrid (up by 8.6%), Cataluña (7%), the Balearic Islands (6.2%), Melilla (5.3%) and Ceuta (5.2%). On the other hand, the lowest increases were recorded in Castilla-La Mancha (0.8%) and Castilla y León (1.1%).

In quarterly figures, private (unsubsidised) house prices decreased in ten autonomous regions as well as in Melilla; they rose in four regions and in Ceuta; and they remained stable in Andalucía, Aragón and the Community of Valencia. The largest decreases were recorded in País Vasco (-1.6%) and Extremadura (-1.5%) and the greatest increases were seen in Madrid (+1.5%) and Cataluña (+1.2%).

Original story: Expansión

Translation: Carmel Drake

Tinsa: House Prices Rose By 0.8% In Q4 2016

4 January 2017 – El Mundo

Average house prices in Spain rose by 0.8% during the fourth quarter of the year with respect to the same period in 2015, according to provisional data published in Tinsa’s IMIE Local Market Index. According to the appraisal company, the stabilisation in prices, which is in line with the YoY variation recorded during the third quarter of the year, “reflects micro-market multiples, which are evolving at different speeds”.

The index highlights that Cataluña, which saw an increase of 7.2%, the Community of Madrid (5.2%) and País Vasco (4.3%) continue to be the drivers of the housing market in Spain, followed by the Canary Islands and Andalucía, which saw price rises of 2.8% and 2%, respectively, in terms of YoY variation during Q4.

At the other end of the spectrum, the highest price decreases were recorded in the regions of Murcia (-4.8%), Castilla y León (-3.9%) and the Balearic Islands (-3.1%). Price decreases were also observed in Cantabria (-2.1%), Navarra (-1.9%), Asturias (-1.3%) and Aragón (-0.9%), which closed the year with lower prices than in Q4 2015.

According to Tinsa’s report, homes are now at least 5% more expensive than they were a year ago in up to six provinces. Barcelona (8.4%), Palencia (7.8%) and Guipúzcoa (7.4%) saw the highest price rises over the last year, followed by Málaga (with growth of 6.6%), Madrid and Almería (both of which recorded YoY rises of 5.2%).

By contrast, the provinces of Huelva and Lérida registered decreases of -6.9% and -6.5% over the last year, respectively. The provinces of Orense, León, Murcia and Valladolid are saw prices decreases of more than 4%.

Cities

By provincial capital, house prices rose significantly over the last year in San Sebastián (12.1%), Bilbao (11.6%) and Barcelona (11%), well above the increases recorded in Madrid, Málaga and Palencia, where average prices rose by 6.3%, 5.4% and 5% YoY, respectively.

This evolution contrasts with that recorded by the group of 29 capitals where average prices are lower than they were a year ago, led by León (-11.1%), Murcia (-7.3%), Valladolid (-6.6%) and Lugo (-6.2%).

Tinsa’s detailed analysis of the residential market in Spain’s five largest provincial capitals reveals significant price increases in certain districts of Barcelona, Madrid and Valencia. That was the case in the neighbourhoods of Gràcia and Eixample in Barcelona, where the average price of finished homes rose by 16.5% and 15.1% YoY, respectively.

In Madrid, the highest price rises were concentrated in the areas of Hortaleza (13.4%), Centro (11.9%) and Tetuán (11.4%). (…).

The Barcelona district of Sarriá-Sant Gervasi continued to be the most expensive neighbourhood of the five large capitals analysed, at €3,901/m2, followed by Les Corts (€3,716/m2). In the capital, the neighbourhood of Salamanca, with an average price of €3,645/m2 exceeded prices in Chamberí (€3,562/m2), which saw the highest price rises in the city last quarter.

Rate of sales

According to Tinsa, average sales periods (…) have decreased below 10 months for the first time since this indicator was first compiled in Q2 2015, to 9.9 months across Spain. (…).

Original story: El Mundo

Translation: Carmel Drake

Tinsa: House Prices Soar In Madrid & Barcelona

4 April 2016 – El Mundo

The housing market is becoming increasingly stronger in terms of prices in Spain’s large cities, with Barcelona and Madrid leading the charge. That is according to Tinsa, which has published its IMIE Local Markets Index for Q1 2016. Between January and March, the value of homes (new and second-hand) in Barcelona and Madrid soared by 9.2% and 7.5%, respectively, in YoY terms.

These high percentages sit well above the average increase across the country, which amounted to 1.4%, with the market recording its second consecutive quarter of increases. Cataluña (8.2%) and Madrid (7%) “are still the drivers, thanks to the dynamism of their respective capital cities”, says Tinsa.

After Cataluña and Madrid, the highest price rises were recorded in the Balearic Islands (3.8%), Castilla La Mancha (3.5%) and the Canary Islands (2.4%). During the quarter, Asturias (+2.2%), La Rioja (+2.2%) and País Vasco (+0.4%) joined the group of autonomous regions with positive movements in their YoY prices. At the other end of the spectrum, the highest decreases were recorded in Aragón (-3.5%) and Galicia (-3.1%), but those decreases have moderated with respect to previous months.

In this sense, for the first time since the start of the crisis, more autonomous regions recorded increases during the first quarter than experienced decreases. (…).

House sales takes 10.5 months on average

Meanwhile, it takes 10.5 months, on average, to sell a home. According to data on the housing supply and the rate of sales in each region, the provinces where it takes the longest time to find a buyer are Cantabria (19 months), Ávila (17.1 months) and Álava (16.8 months). By contrast, the provinces where the housing market is most liquid include Las Palmas and Madrid, as well as the autonomous cities of Ceuta and Melilla, with average sales periods there of less than seven months.

Meanwhile, the percentage of salaries required to pay the first year of the mortgage amounts to 22%, and it takes six years salary on average to buy an average home in Spain.

A recovery that is here to stay

During the presentation of the index, Tinsa’s Director of Products and Diversification, Pedro Soria, said that 2015 was the year of revival for the housing market and 2016 marks the beginning of the sector’s normalisation following seven years of deep crisis.

“The recovery is here to stay, we are embarking on a new more rational and sustainable cycle, and the general decrease in house prices has come to a definitive end” said Soria, who also added that the political uncertainty does not seem to have cooled the recovery. Nevertheless, Tinsa warns that regional markets are operating at different speeds. (…).

More sales, mortgages and construction permits

Tinsa’s Director of Research Services, Jorge Ripoll, predicts that interest rates will remain low in the context of low and negative consumer prices. According to Tinsa’s forecasts, house sales will grow by between 10% and 15% to reach between 440,000 and 460,000 this year, and housing permits will recover by between 30% and 40%, to amount to between 65,000 and 70,000.

In addition, mortgages will grow by between 15% and 20%. (…).

Evolution of prices by province

By province, the quarterly statistics reveal YoY price increases in 25 provinces during Q1, including in Barcelona (8.9%), Albacete (7.6%), Madrid (7%), Lleida (6.5%), Santa Cruz de Tenerife and Girona (both 5.9%). The YoY increase also exceeded the Spanish average (1.4%) in 12 other provinces.

The most acute decreases at the provincial level were recorded in Álava, Teruel and Jaén, with YoY reductions of 7.8%, 6.7% and 6.3%, respectively. Price decreases also exceeded 3% in the provinces of Córdoba, Pontevedra, Palencia, Burgos and Zaragoza. (…)

Original story: El Mundo

Translation: Carmel Drake

Notaries: House Sales Increased By 12.3% In March

19 May 2015 – El País

House sales increased by 12.3% in March, but average prices decreased by 7.5%.

House sales soared by 12.3% in March, with 34,736 transactions, a new inter-annual increase that reflects the stabilisation of monthly sales, according to the real estate statistics published by the General Council of Notaries.

Conversely, average prices experienced a further drop, of 7.5%. The price per square metre of homes sold was €1,202, which represents a cumulative decrease of 36.3% since the start of the crisis in 2007. “The reduction in the price per square metre is due to decreases in the price of flats (-6.1%, YoY) and unifamiliar homes (-10.2% YoY), explain the notaries.

By type of property, the sale of flats increased by 11.3% in March with respect to the same month a year earlier. This increase in the volume of transactions involving flats was supported by the increase in the sale of second hand properties (+19.8% YoY), whilst the sale of new builds declined again, by 32.6% YoY.

Meanwhile, the sale of unifamiliar homes grew by 16.3%.

The number of new mortgage loans taken out for the purchase of new homes increased by 27.6% in the month of March (14,755 were signed) and the average amount was €118,587, up 0.5%. The percentage of homes purchased using mortgages amounted to 42.5%. Moreover, for this type of purchase, the loan amount represented 77.7% (of the value of the purchase) on average.

Original story: El País

Translation: Carmel Drake