“Sales correct in October, although the trend remains positive,” say BBVA Research, introducing their Real Estate Flash report published on the 2nd of January.
The “correction” in October first came to light when the General Council of Notaries published their data on home sales witnessed that month, see article “Market Shrinks In October Driven By Collapse In New Home Sales.”
BBVA Research argue the small October sales correction needs to be understood in the context of improving fundamentals, which will support sales in future. “Most of the demand fundamentals are maintaining their improvement: employment is still rising and interest rates fell again, against a backdrop since the summer of dampened consumer confidence. Construction activity, meanwhile, appears to be keeping to the stance of progress it began a few months ago, while land transactions showed a positive change. Finally, evidence is mounting about the rise in housing prices towards a relative stability.”
The “Real Estate Flash” runs through the key economic variables that determine supply and demand in the housing market, and conclude that house prices are “moving towards relative stability.”
You can read the latest BBVA Spain Real Estate Flash in English (pdf) here.