Home sales crashed and property prices plunged in October according to the latest data from the General Council of Notaries.
Residential property sales fell 8.9pc year-on-year in October to 28,418, and 10.6pc after seasonal adjustment, according to the notaries.
Year-to-date (first 10 months), house sales are down 11.3pc compared to the same time last year.
House prices fell 10.5pc in the same period, the fortieth consecutive month of decline, with the exception of August (when prices case a stir by rising 0.6pc). The average cost of housing in Spain now stands at 1,204 €/m2, down 36.2pc from the peak in July 2007.
New mortgage lending dived 22.5pc in October, with the average new mortgage down 5.2pc in value.
So there was no good news for the housing market in October, according to the notaries’ figures
Nobody expects the figures to show any recovery in November or December, so it’s safe to say that 2013 will not be the year the Spanish housing market starts its recovery. Maybe next year…
But I’m sticking to my opinion that 2013 will turn out to be the bottom of the market. I forecast that transactions will increase next year, and though average prices will continue falling, the rate of decline will decrease significantly, moving into positive territory in 2015.