NOTARIES: Housing market draws breath in April

spanish property sales and house prices april 2017
Index. Jul-07 = 100. Home sales (left) and House prices in €/m2 (right)

There were 40,005 homes sales witnessed by Spanish notaries in April, a decrease of 2% compared to the same time last year (but an increase of 3.3% if seasonally adjusted).

That compares to an annualised increase of almost 20% in March, so the figures are volatile, and it’s too early to talk of a trend.

When you strip out subsidised housing and look just at the free market, home sales were basically unchanged, up just 0.1%.

Resales were up 1.2%, but new home sales were down 10.7%.

The average price of property sold in the month increased 2.4% to 1,336 €/m2.

That leaves home sales around 40% below where they were in 2007, and prices 30% below, as illustrated by the chart above.

New Mortgage Lending In April

New residential Spanish mortgage lending fell 7% in April, whilst the average new loan value rose 0.4% to €126, 646. That contrasts with an increase in new mortgage lending of 18% in March.

After many months of big increases in homes sales I suspect the market has just paused for breath in April, and will return to growth in the coming months. Nothing has changed on the macroeconomic front to the recovery in sales has run out of steam just yet.

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