Spanish housing market expansion continues in May

SPANISH HOME SALES

The Spanish housing market expanded by 7.7% in May (7.3% seasonally adjusted), according to the latest data from the Association of Spanish Notaries.

There were 51,896 sales in total, including social housing, with resale apartment transactions up 6.7% whilst new flat sales were down 12.7%, and single family homes up 16.3%.

The Spanish housing market is now into its fifth year of expansion since the market turned the corner at the start of 2014, as illustrated by the chart above.

How long will this expansion last? As the next charts show, both sales and house prices are still a long way from the peak of the boom years, and although those years are not a healthy benchmark, the big gap suggest there is still some room for growth on both fronts, assuming the Spanish economy continues to recover.

spanish home sales and prices

Index July 2007 = 100. Sales (left) and house prices (right)

The notaries’ latest report also reveals that average house prices increased by 0.6% to 1,372 €/m2, and mortgage lending increased by 9.3%.

About Mark Stücklin

Mark Stücklin is a Barcelona-based Spanish property market analyst, and author of the 'Spanish Property Doctor' column in the Sunday Times (2005 - 2008).