BBVA Research recently published a report noting the Spanish property market’s “good mood” in the first half of this year, in keeping with the bank’s earlier forecasts.
The research division of BBVA, Spain’s second biggest bank – expects around 500,000 home sales this year, which would be a double-digit increase on last year. The forecast was reiterated in the latest edition of its periodic Spanish Property Trends report.
According to data from the Spanish Notary Association cited by BBVA Research, almost 265,000 properties were sold in the first half of this year, representing a year-on-year increase of 15.5% fuelled by the economic recovery and low mortgage rates. The market is on course to hit or beat BBVA’s forecast of 500,000 homes sold this year.
The latest market data is all positive, points out the report. In June, some 51,477 properties were sold, up 17.4% in the year, and by 5.4% in a month (seasonally adjusted). Sales had been trending down on a monthly basis in April and May, so June brought a return to growth on all fronts.
BBVA Research point out that the Spanish property market recovery goes hand in hand with the wider economic recovery. Spain’s GDP went up by 0.9% between January and June, and almost 377,000 jobs were created in the first seven months of the year.
Other indicators, such as consumer confidence, or industrial confidence, remain at historic highs, without taking into account further economic growth over the next few quarters.
The other pillar of the housing market recovery is low interest rates, which have fallen to get another record low. Average new mortgage loan interest rates were just 2.2% in July.