Foreign demand for home purchases skyrockets and caresses 16%
The home sales grew by 5.5% in September compared to the same period of the previous year, with a record in foreign demand, as reported on Thursday by the College of Property Registrars. With regard to the third quarter of the year, home sales grew by 2.4% compared to the previous quarter with 167,892 transactions, the highest level since the third quarter of 2007 (last fifteen years).
Both used housing (139,297 sales) and new housing (28,595 sales) contributed to growth, with increases of 2.4% and 2.6%, respectively. In fact, used housing reached the second highest result in the historical series, only surpassed by the first quarter of 2006 (140,646 sales). Single-family homes accounted for 19.47% of sales, accumulating three consecutive quarters below 20%.
The sale of homes added 640,082 operations in the last twelve months, the highest amount since mid-2008, with a year-on-year growth of 19.8%. In used housing, 522,737 sales were registered, the highest level since 2006, and 22.3% more in the interannual rate. For its part, in new housing, 117,345 sales were reached, the second highest result since 2014, and which shows an increase of 9.8% compared to a year earlier.
All autonomous communities experienced increases year-on-year, being double digits in fifteen of them. By provinces, the largest number of sales was in Madrid (20,727); Barcelona (17,468); Alicante (13,486); Malaga (10,919); Valencia (9,995); Murcia (5,841) and Seville (5,601).
The average house price slowed down with a quarterly increase of 0.1%, well below the 2.4% of the previous quarter, and reached an average amount of 1,958 euros/m2. In used housing there was a quarterly decrease of 0.3%, while new housing became more expensive by 1.7%. The Communities with the highest average prices were the Community of Madrid (3,229 euros/m2); Balearic Islands (3,082 euros/m2); Basque Country (2,891 euros/m2); Catalonia (2,431 euros/m2) and the Canary Islands (2,306 euros/m2).
The demand for sale skyrockets
The foreign demand for housing registered a new maximum with a percentage of 15.92% of total sales, giving rise to the sixth consecutive quarter with increases in relative weight. This growth has occurred, fundamentally, as a result of the increase in less common nationalities, explain the registrars.
The nationalities with the greatest weight were the British (9.3%); Germans (8.04%); French (6.21%); Romanians (4.58%); Belgians (4.27%), Dutch (4.1%) and Moroccans (4.01%). The highest results were achieved in the Canary Islands (33.7%); Balearic Islands (31.46%) or Valencian Community (28.34%). The average area of housing transferred at the national level continued to decline for the sixth consecutive quarter and fell by 0.3% to 100.3 m2.
The number of home mortgages registered in the third quarter was 116,725, with a quarterly decrease of 2%. Contracting interest rates for new mortgage loans registered an increase of 0.08 percentage points to 2.23%, leading to a change in trend that will continue over the coming quarters. The contracting at a fixed interest rate marked a new maximum in percentage of new mortgage loans (69.2%)with a quarterly increase of 1.62 points.
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