The spanish property market expanded by 11% in July, according to the latest figures from the General Council of Notaries.
There were 39,105 home sales in July (37,620 if you excluded subsidised housing), up 11% on sales the same time last year.
The spanish property market has expanded all year (only January and February were negative), and in nine of the last twelve months, providing further evidence that the market is on the road to recovery, albeit from a deeply depressed state.
MORTGAGE CREDIT FUELS HOUSING DEMAND
One of the main factors behind rising home sales is easier, cheaper mortgage credit.
There were 17,450 new mortgages signed in July, up 27% on the same month last year, taking the number of sales involving mortgage financing to 46% – the highest level since the the boom years in the middle of the previous decade.
Cheaper mortgage financing, and easier borrowing conditions, create real demand for housing, which can be seen in the rising sales figures. Spanish lenders are battling for market share by lowering their margins and even lending at a loss, and Spanish mortgages are now some of the cheapest in the Eurozone.