Home sales inscribed in the Land Registry increased by 19% in June 2017, according to the latest figures from the National Institute of Statistics (INE).
Excluding subsidised housing, there were 39,625 home sales inscribed in the Land Register in June, up 19% on the same month last year, having risen an annualised 25% in May.
Monthly home sales have now risen on an annualised basis almost every month since March 2014, when the Spanish housing market began to recover after six years in recession. Sales have only fallen in two months since then, including April this year (-8%), a decline that was due to seasonality.
The INE’s figures are based on sales inscribed in the Land Register, not actual sales that took place in the month. As such they lag the market by about two or three months.
New and Resale
New and resale home transactions both increased by 20% in June, the first time new home sales have risen by 20% since August 2010 (when the increase was due to banks repossessing new homes from developers, not real sales). I expect new home sales to maintain a growth trend for the next few years, as off-plan sales lead to completions that show up in the official figures.
Spanish Home Sales by Region – June 2017
By selected region (where foreigners tend to buy), Catalonia is enjoying the best of the growth in sales this year, with residential transactions up 26% year-to-date in Tarragona province, home to the Costa Dorada, and Girona (Costa Brava) not far behind on +24%, followed by Barcelona up 22%.
Sales are also up in Asturias (25% ) and Cantabria (+21%), the Balearics (+20%), and Alicante (18%), where Brexit has done little harm to the local housing market despite being the most popular destination for British buyers.
Brexit may be having more of an impact on the Costa del Sol – the second favourite destination for British buyers – where sales are up 12%, which sounds good but is below the national average. Malaga province, home to the Costa del Sol, was a star performer in the year before Brexit.
Looking at annualised sales for June, Valencia City increased the most with sales up 43%. Other hot markets in June included Murcia (+27%), the Balearics (+23%), and the Canaries (+22%).
Castellón province, home to the Costa del Azahar, is still shrinking both on a monthly and year-to-date basis compared to the previous year, which goes to show that some areas have still not put the crisis behind them.