Home sales down 32pc in Q3

The lowest level of quarterly sales since the crisis began, according to figures from the property register.

There were 84,852 homes sold in Spain between July and September, 31.9pc less than the same period last year and 9.3pc less than the previous quarter. It was the lowest quarterly level of sales since the data series began, as illustrated by the chart above (total sales in blue, new build in red, resales in yellow).

I am of the opinion that this is about as low as the market will go in volume terms. Q4 may well be another record low, but after that I expect the market to bottom out in the course of 2012. Which is not to say there will be a strong recovery after that – far from it. But at least the market will have stopped shrinking.

Of course, I could be wrong, especially if the credit crunch gets worse. Mortgage financing is the key to any market recovery.



One thought on “Home sales down 32pc in Q3”

  1. John Goldacre

    Here in the Canaries at GoldAcre Estates we seem to be bucking the market trend as we have seen a Year on Year increase in sales of some 20% in our Fuerteventura operations.

    We have seen more resales than new of course and the main price bracket has been in the 70,000 to 150,000 price range.

    Also we have seen many buyers from mainland Spain as well as other european countries, including the UK and Italy.

    Tourisum is on the increase and we are anticipating further growth in 2012 subject to no world disasters

    John Goldacre
    Managing Director
    GoldAcre Estates S.L

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About Mark Stücklin

Mark Stücklin is a Barcelona-based property market analyst and consultant, and author of the 'Spanish Property Doctor' column in the Sunday Times (2005 - 2008). He can be reached by email on ms@spanishpropertyinsight.com.