Spanish home sales inscribed in the Land Registry increased by 19% in July 2017, according to the latest figures from the National Institute of Statistics (INE).
There were 35,124 home sales inscribed in the Land Register in July (excluding subsidised home sales), and 38,841 if you include homes subsidised by the Government, known as VPO.
Home sales have risen by double digits almost every month this year, in keeping with a recovery trend that started in March 2014 when the market turned the corner after seven years of declines.
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 transactions
There were 32,049 resales recorded in the period, and 6,792 new home sales (not including off-plan sales, which won’t show up in the figures for months, but which are bound to be growing fast). Both new and resales were up, by 13% and 18% respectively.
The following chart shows how large and repetitive declines in new home sales are now a thing of the past, as I’ve been forecasting for some time. The steady improvement in new home sales is a clear sign that the market is recovering, though new home sales are nowhere near the absurd heights they reached in the boom years.
Spanish Home Sales by Region – July 2017
I’ve prepared the following graphs to illustrate how sales changed by selected region – those regions of most interest to foreign buyers, owners, vendors, and investors.
The first chart shows the year-on-year percentage change in sales in July, and the second one shows the same, but for the year to date (first seven months) compared to the same period last year.
If increasing home sales are a positive sign, it’s clearly turning out to be a good year for Catalonia, with some of the biggest home sale increases in Tarragona (Costa Dorada), Girona (Costa Brava), and Barcelona City. So it seems property buyers local and foreign are unfazed by the whole question of unilaterally declared independence from Spain being pursued by the Catalan regional government. Just a storm in a teacup, like some of my Spanish relatives claim? I’m not so sure. Time will tell.