The sale of homes rose by 5.3% last February in relation to the same month of 2018, to add 43,695 operations, as reported.
The sale of homes rose by 5.3% last February in relation to the same month of 2018, to add 43,695 operations, as reported this Friday by the National Institute of Statistics (INE).
With this rebound, the sale of homes returned to positive rates after starting the year with a year-on-year decrease of 0.2%. The increase recorded in February was a consequence of the increase in operations on new homes by 18%, up to 8,796 transactions, and the advance of 2.5% in the purchase and sale of used homes, up to 34,899 transactions.
89.8% of the dwellings transmitted by buying and selling in the second month of the year were free dwellings and 10.2% protected. The sale of free dwellings increased by 4.7% in February in interannual rate, to total 39,236 transactions, while the operations on sheltered housing advanced by 11.3%, with 4,459 transactions. In monthly terms (February on January), the sale of homes fell by 8.3%, registering its second largest decline in a month of February since 2015.
"The housing market continues to advance in its recovery, but at a more moderate pace than what we saw a year ago, new housing is gaining weight compared to the second-hand, although the latter continues to be the main protagonist of recovery by level of supply and prices,"explains Beatriz Toribio, director of Estudios de Fotocasa.
According to Toribio, "the smallest pull of second-hand housing may be related to the strong price spikes that we are noticing in some areas." The average price of second-hand housing has experienced an increase of 8.4% according to the data of the Fotocasa Price Index for the month of March, the highest increase in the entire history of the real estate portal index.
"The interest for the purchase of housing has returned , but according to our data, the bulk of the population is left out due to the lack of savings or mortgage financing essential to deal with this important outlay. But that does not mean that the Spaniards do not think of home buying as an important asset and investment value, "adds the director of Estudios de Fotocasa.
The data from the INE show that the regions where activity increases the most compared to last year are Galicia, Castilla-La Mancha and Castilla León, where the prices of second-hand housing rise at a slower pace than the Community of Madrid or the Balearic and Canary Islands, areas where prices are increasing at a rate higher than 10% according to the data from Fotocasa.
"The housing market continues to advance in its recovery, although the levels of activity, mortgage concession and prices are light years away from the records reached in the years of the boom", concludes Beatriz Toribio.
Alicante led the classification of purchases for every thousand inhabitants and was the first Spanish province for sale to foreigners
Monday, April 1, 2019, 13:07
The Comunitat closed 2018 as a leader in relative real estate activity , one that measures the number of home sales per thousand inhabitants, according to the data of the 'Real Estate Yearbook', published this morning by the College of Registrars. With a rate of 15'8, it was ahead of regions such as the Balearic Islands (13'4), Andalusia (12) or Madrid (11'6). The Valencian market obtained almost five points more than the average registered in Spain (11), which experienced a slight increase compared to 2017.
By provinces, Alicante led the provincial classification thanks to its 21'3 purchases per thousand inhabitants, while Castellón registered the third position with 15'3 and Valencia obtained a rate of 12'1.
Third in number of operations
In absolute terms, 516,680 sales were registered in Spain, 11.3% more than in the previous year, achieving the highest increase of the last ten years. Of these, 426,542 were used homes and 90,138 (just 17.5% of the total) new.
The Valencian was the third region with more registered operations , after Andalusia and Catalonia, reaching a market share of 15.2%. Of the 78,604 transactions, which represent an increase of 15.3% compared to 2017, 68,592 corresponded to used housing and 10,012 to new housing. Alicante was third (39,428 operations) after Madrid and Barcelona, Valencia fifth with 30,443 and Castellón registered 8,733 purchases. In the chapter of new housing, the Valencian region occupied the fourth position , while in used housing it was third, after Andalusia and Catalonia.
All these data have been released today in Madrid by the College of Property Registrars, during the presentation of the «Real Estate Statistics Yearbook 2018».
48.2% of mortgages contracted have a fixed interest rate
The region doubles the foreign demand
One of every four homes acquired in the Comunitat Valenciana in 2018 had foreign citizens as protagonists. The result (26%) is twice that registered at the national level, where 12.6% of the homes were purchased by foreigners, exceeding 65,000 operations.
These figures place the Comunitat Valenciana in the third autonomous place in purchase by foreigners , after the Balearic and Canary Islands. The British continue to lead demand in the region (17.3%), followed by Swedes, Belgians, French and Russians. By provinces, highlights the huge pull of Alicante, first in the provincial classification with a 40% foreign share, followed by Tenerife, Balearic Islands, Malaga and Girona. Castellón was above the national average (13.5%) and Valencia obtained a 10.2%.
6% of purchases made by foreign citizens in Spain presented an amount equal to or greater than € 500,000, while in the region the percentage fell to 2'1%.
2018 was a new increase in the number of mortgages on housing contracted in Spain, with a total of 346,366, 11.5% more than in the previous year. The Valencian region added 37,477 mortgages , which places it in fourth place in the regional classification in this section, with an increase with respect to 2017 of 15.6%. Together with Madrid, Andalusia and Catalonia, 65.6% of the mortgages granted in Spain are accounted for.
Alicante subscribed 14,945 mortgages, Castellón 3,945 and Valencia 18,587. The three provinces registered an increase compared to 2017 above the national average rise, which was established at + 11.5%. While in Spain 6'7% of mortgages were formalized by foreign citizens, in the Valencian Community the percentage grew to 12'1%, placing the region as second with more weight in this chapter.
Record in the average time of possession
In 2018 Spain reached a new historical maximum in the average period of possession of the property object of transmission. With 14 years and 8 months, and a growth of 4.5% compared to 2017, the residential use of housing increases and the speculative component is reduced. Eight out of ten homes remained in the hands of their owner for more than five years and 67% for more than ten years. In Comunitat Valenciana, the average time of possession is one year higher, reaching an average of 15 years and 8 months .
The average amount of new mortgage loans in Spain stood at 124,333 euros during 2018, although in the Valencian region it was significantly lower. With 90,959 euros on average, it shows the fourth lowest indebtedness in the regional classification .
Almost half of the mortgage loans contracted in the region (48.2%) presented a fixed interest rate, nine points above the national average, which places it as the fourth community with the highest number of fixed-rate mortgages.
A year and a half less to pay the mortgage
Valencians spend on average a year and a half less in paying their mortgage than the rest of the Spaniards. Specifically, twenty-two years and two months, for the 23 years and 7 months of the national average.
The average mortgage rate and its percentage with respect to the wage cost, used as an indicator of accessibility to housing, was 440 euros and 25'7% in the Valencian region during 2018, for 568 euros and 29'7% of the average national. The Comunitat Valenciana was the third in which the average amount of the house rose the most, as well as its percentage in relation to the salary cost.