S&P forecasts continued market growth with the possible exception of Catalonia, as notaries reveal sales increased by 4.5% in December, and prices by 1.8%

spanish home sales and house prices december 2017
Index July 2007 = 100. Sales (left) and house prices (right)

Spanish home sales were up an annualised 4.5% in December to 48,956 transactions, whilst the average price of property sold in the month was 1.8% higher in terms of €/m2 than the same month last year, reveal the latest figures from the Spanish Notaries Association.

Not long before the notaries released their latest data, the international ratings agency Standard & Poor’s (S&P) published a report forecasting continued growth in Spanish home sales driven by strong economic growth (source Europa Press)

In its report on European housing markets S&P explains that robust consumer demand lies behind job creation and economic growth, which is expected to be stronger than last year. Rising employment, economic growth, and low inflation, are all contriving to increase the purchasing power of residents of Spain.

Pointing out that Spanish house prices rose 4.2% in 2017 (according to Tinsa), and transactions rose to 455,000, whilst the glut of never-sold homes on the market has retreated to those areas with little or no demand, S&P forecast continued growth rising to 8% this year, with the caveat that the constitutional crisis in Catalonia could lead to a recession in its regional housing market.

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