Home purchases grew by 19.4% in June and touches three-year highs
More than 36,850 changed hands, the highest figure since the start of 2013.
The housing market continues its recovery and in June the number of homes changing hands touched its highest in more than three years. 36,856 purchases, 19.4% more than in the same month of 2015 were recorded in total, according to the National Statistics Institute (INE). The growth in June is somewhat lower than in April and May (when 30% and 23% rose, respectively) but provides the finishing touch to the best semester since 2010. That's right: not all provinces recovery is so powerful because the operations are concentrated around five major urban centers.
Taking into account the evolution of the entire first half, sales growth of housing is 16.4% compared to January-June period of 2015. In total in the first half of the year 207,593 transactions were closed. It is the best half that the sector since the second half of 2010, when 213,969 homes were sold. Gone are still months of the housing boom. In the first half of 2007, for example, 432,608 operations, more than double the now closed. Still, the pace has accelerated a lot and has already sold nearly 60,000 more homes in the worst sector in the second quarter of 2013.
The analysis of the sector presage that the year will end with positive growth and housing will continue to be used to pull the sector. For example, Bankinter reported on Tuesday a report stating that sees demand in Spain will reach 440,000 flats this year, which means end the year with an increase of 10% compared to around 2015. As for prices, he said waiting binds increase of between 3% and 5%.
Low interest rates
With interest rates so low, banks offer minimum returns on deposits and brick recovers attractive investment as also the negative Euribor interest mortgages are also reduced. Looking ahead to 2017 Bankinter noted that sales keep rising, with rates close to 6%, to 480,000 homes a year at most.
On the slowdown of the rise in sales in June (in May and June growth operations was higher) Fernando Encinar, head of research at Idealist, recalled Wednesday in a statement that "the sector continues to improve its numbers steadily" and the year growth demonstrated, an improvement of 19.4%. However, he stressed the differences between areas, which are very significant. "Although the data is very positive also show that 45% of the operations are closed in 5 provinces, causing that while some provinces are growing at double-digit rates, others still hold downtrends."
Specifically, by provinces, Madrid is where most homes are sold, with 5,441 transactions in June alone. Followed by Barcelona with 4.145. Then there is Alicante (2,620), Malaga (2535) and Valencia (1,795). These areas are recovering from the debacle experienced by the real estate market since 2008.
Although the sector in these provinces has not regained pre-crisis levels, with respect to the height of 2007 sales in Madrid is 27% lower. In Barcelona, 29%. And in Málaga 25%. While in other provinces the sluggishness remains the top. With respect to the pre-crisis level in Asturias, Leon, Salamanca, Huesca and Jaen sales are now 60% lower. In Cuenca and Ciudad Real, 70%. And in Teruel, sales are now lower than in 2007 80%.
If the focus of the purchases from June to all types of farms (also rustic or commercial premises), the number of registered transmissions in property records widens was 151,447, representing 3.3% more than in the same month of 2015. in the case of rural properties, lower operations 1.6% over the same period of 2015 (0.2% in the first half).