Home Sales Grew by 22.9% in February, Say Notaries

The Spanish housing market is continuing to gradually recover, according to the latest real estate statistics published on Friday by the General Council of Notaries. In February, housing transactions increased by 22.9% year-on-year, to a total of 34,268 transactions, while average house prices registered a minimal increase of 0.6%, to stand at 1,233 euros per square metre.

The year-on-year increase in home sales is mainly as a result of the growth registered in sales of second hand apartments, which increased by 25.9%, to a total of 23,227 transactions while, in contrast, sales of new homes recorded a decline of 5.1%, to 2,340 transactions.

Sales of single family homes also registered a significant increase year-on-year, of 22.6%, which the Notaries say, in general terms, reflects the underlying path of recovery of the real estate market in Spain.

With regard to the average price per square metre, the Notaries explained that the slight increase registered, of 0.6%, is due to the increase in the price per square metre of single family dwellings, which rose by 3.8% year-on-year, and also to the slight drop in the price per square metre of apartment type dwellings which fell by 0.2% compared to the same month of 2015.

Thus, the value per square metre of the single family homes stood at 1,007 euros, while second hand apartments stood at 1,350 euros (+0.6%) and new apartments had a price per square metre of 1,619 euros (+0.3%).

El Mundo reported that the number of mortgage loans for the purchase of a home increased by 34.7% in February, compared to the same month in 2015, reaching a total of 15,630 new contracts signed, while the average value of these loans increased by 1.9%, to stand at around 119,142 euros. Of the total number of transactions carried out on housing in February, the percentage of these home purchases which were financed by a mortgage loan was 45.6%. In addition, in this type of financed purchase, the average amount of the loan was 78% of the property value