The Spanish property market shrank by just 3pc in July compared to the same time last year, and shows signs of finding a floor, in transaction terms at least.
There were 24,005 home sales in July (excluding social housing), 3pc less than the same month last year, and 8pc more than the previous month, according to the latest figures from the INE.
July’s annualised fall was the smallest of the year by a wide margin, and it now looks as if the market has found a floor in transaction terms, as illustrated by the chart above. We will have to wait a few more months to see if the trend is confirmed.
There were roughly 275,000 homes sold over 12 months to the end of July, which might turn out to be the minimum number and turning point in this cycle. In a country of more than 47 million people, and some 16 million households, not to mention European demand for holiday-homes, there comes a point when the housing market will have to start growing again.
The following table provides all the key data on Spanish home sales over the last 5 years (click to enlarge).
The Department of Housing also recently published housing market transaction data for Q2, broken down by region in the following table.
Thoughts on “Spanish housing market shows signs of finding a floor”
Dugles Tulk says:
Who ya kidding or working for Mark??? Just look at HOW MANY PROPERTIES ARE BEING SOLD and how many resale/new properties there are on the market!!!
Guess you must have reasons for talking up the market but anyone with half a brain and a D in gce economics can see that over the next 12 months another 20% AT LEAST drop in prices is on its way.
Feel sorry for existing owners (of which I am one)trying to get out but the only valid message is “Drop your asking price now or face even bigger losses between now and mid 2014”
This article is about TRANSACTIONS not PRICES. There is a big difference. Elsewhere in this blog I regularly point out that I expect prices to continue falling for the time being.
paul wentworth says:
Well,I for one feel sorry for sellers at this moment in the Spanish housing market( or should that be the World market).
However what I find hard to equate are the claims by some sellers ‘I have reduced the price by 20/30%’ but from what!!!!.
Was the original asking price much inflated? are vendors still living in the past? and what was the price paid originally?
Hi Mark, You’re certainly right as far as where I bought, and now live, is concerned.
Whilst there are a number of different kinds of properties, and indeed price ranges, a CONSERVATIVE estimate is that all the properties have depreciated by A MINIMUM of 75% from their original sale price.
But this notwithstanding, there still are no indications of interest by any buyers – even the properties )and there are many) which have either been re-po’d, or the keys have been surrendered, and 100% mortgages are offered.
The bank(s)are at this moment are engaged in sticking up “For sale” stickers on numerous of their acquired properties. Just how they determined the price is open to speculation, but one assumes that they must have some form of professional criteria – or have they simply set the price at the mortgage that they hold?
That would seem to be as likely a system as any, because there’s no other common denominator.
paul wentworth says:
Mike, from what you state I take it your a vendor, however your statement that all the properties have depreciated by 75% from ‘their original sale price’ is somewhat OTT, surely you mean ‘original BLOATED sale price’.
Taking this analogy sales prices have not dropped by anything like the 75%, more like 25 to 30%.