Mon. Feb 24th, 2020

The sale of housing enters the red zone and falls for the first time since 2011

The housing market has confirmed in the first month of 2020 the slowdown that had been pointing since last summer. This has been confirmed by the General Council of Notaries in its latest statistical report, which reveals that transactions for home purchases in Spain were reduced by 3.4% in 2019 compared to 2018, to 566,777 transmissions, which is the first decrease year-on-year since 2013. This fall in transactions was due both to the decline in second-hand floors (-0.7% year-on-year) and the fall in new apartments (-15.1%). On the other hand, single-family homes reached 11,944 operations, assuming the only increase in these indicators, of 9.1% year-on-year.

In December alone, the sale of homes fell 1.2% year-on-year, to 53,947 transactions, of which 42,003 corresponded to flats, 3.8% less. The percentage of home purchases financed by a mortgage loan stood at 50%. In this type of purchases with financing, the amount of the loan averaged 74.1% of the total.

As for the price, the increase per square meter was due both to the rise in the value of single-family homes (0.8%) and to that of apartments (1.6%). The price of second-hand ones stood at 1,588 euros (0.6% year-on-year) and that of new apartments soared to 2,322 euros (7.2% year-on-year). The average price per square meter reached the highest level since 2011, with 1,438.24 euros compared to 1,407.63 euros in 2018.

As for mortgage loans, both to acquire a new and used home, in 2019 they reached an average of 139,534.72 euros – the average in 2018 was 138,707.87 euros -, with an accumulated of 276,954 documented legal acts, compared to to the 266,314 acts of the year 2018.

On the other hand, this statistical study also includes the number of new companies incorporated in the month of December was 8,156, which represents an interannual decrease of 3.8%, although the fall was greater, of 8.5% year-on-year, in the corrected seasonality series, according to the statistics prepared and published this Tuesday by the General Council of Notaries. Among the different legal forms, it was the limited companies, which represent the bulk of the incorporated companies. Their number amounted to 7,645, registering an interannual contraction of 4.2% (-8.3% in the seasonally corrected series).


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