The Spanish property market for residential homes shrank by an annualised 30% in June, the sixth consecutive month of contraction, according to the latest figures from Spain’s National Institute of Statistics (INE).

A total of 43,090 homes were sold in June (not including social housing), compared to 61,595 in the same period last year.

On a monthly basis the market also shrank, with transactions in June down 6% on May.

On a year to date basis to the end of June, 27% fewer homes were sold than during the same period in 2007.

Once again, the resale market appears to be faring the worst, with annualised sales down 39% in June compared to 16% for newly built properties. However, the figures are deceptive, as they fail take into account new sales made by developers, which are down by as much as 60% this year.

The change in the volume of transactions of residential homes in a selection of popular regions was as follows: Andalucia -22%, the Balearics -24%, the Canaries -32%, Catalonia -48%, the Valencian Region -39%, Murcia -38%.

The INE also published statistics showing that the average new mortgage value also fell in June, for the fifth consecutive month, as lenders continue to tighten up their criteria. The average mortgage value fell 4.6% to 141,939 Euros.