December 2, 2020

Home purchases fell again in September and added seven months to the decline



The sale of homes fell again in September, although it did so more moderately with a decrease of 1.1% compared to a year earlier to 37,839 operations, but chained down seven consecutive months in a context marked by the pandemic of coronavirus. Nevertheless, the fall registered in September is the smallest since the health crisis broke out in Spain and the first single digit.

It should be remembered that home sales already fell by 18.6% in March, a decrease that was accentuated in the months of confinement with falls of over 39% in April, 53% in May and 34% in June. In July the adjustment exceeded 32% and in August it was limited to 12%.

However, in month-on-month rate, home sales rose 20.5% in September with respect to August, according to the data released this Thursday by the National Institute of Statistics (INE).

In this regard, the Director of Studies for the real estate portal, Ferran Font, highlights that the market is gradually returning to normal “with improvements that will continue to be conditioned by the reality of each territory and the impact of the second wave on the economy in general, and in the impact that this may have on the income of Spanish families.

But, with these figures, so far this year housing transactions have already accumulated a drop of 22.1%, a period impacted by the health and economic crisis caused by covid-19.

The new work shoots up

The sale of new homes, which still represents little more than 22% of the total, shot up 29.2% in September to 8,388 transactions. It is its biggest increase since November 2017 and the highest number of operations in a month of September of the last six years. However, almost 78% of the operations that were registered in September corresponded to the sale of used housing, which totaled 29,451, 7.4% less than in the same period of the previous year, the less pronounced fall since last month of February.

So far this year, sales of new and used housing accumulate a decrease of 15.4% and 23.6%, respectively.

«Both used housing and new construction increased by close to 20% compared to August and, although second hand leads the records with almost 30,000 operations, only new construction holds up in positive figures compared to last year for the second consecutive month , and it does so with a remarkable 29% “, Font explains.

More than 91% of the homes transferred by sale in September were free: 34,536 transactions and a year-on-year drop of 0.6%. The remaining 8.7% were protected and accounted for 3,303 purchases, 6.4% less.

The sale of homes fell in September in seven autonomous communities and grew in ten. The greatest decrease corresponded to the Basque Country (-23.8%), followed by the Balearic Islands and Navarra (-15%, respectively), Catalonia (-12.6%), Valencian Community (-11%), Madrid (-5, 7%) and the Canary Islands (-4.3%).

The largest increases were recorded in Extremadura (53.3%), Asturias (46.9%), La Rioja (38.6%) or Castilla y León (27.4%), among others

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