There are many clients who ask us about the situation of the current real estate market in Spain. 

Today we want to clarify the news that we have in this Blog, through a statement from Europa Press.

We will answer the question, what do notaries say about this situation?

Home sales fell 5% in July and the price fell by 9.4%, according to notariesThe sale of homes fell by 5% in July and the price fell by 9.4%, according to notaries

The purchase and sale of housing rated 48,586 transactions during the last month of July, representing a year-on-year decline of 5%, due to the impact of the Covid-19 crisis , although it moderates from the 20.9% retracement in June. For its part, the average price of housing yielded 9.4% in the seventh month of the year and mortgage loans fell by 4.8% according to data from the General Council of notarized. By type of housing, the sale of flats showed a year-on-year reduction in July of 12%, while that of free-priced flats fell by 11.9%. This drop in free-floor transactions was due exclusively to the contraction of second-hand flats (-17.4%), as the sale of new flats showed an increase of 43.6% year-on-year. For its part, the single-family house experienced a reduction of 20.7% year-on-year. In terms of average price, the square meter of homes purchased in July reached 1,377 euros reflecting a decrease of 9.4% year-on-year due to both the decline in the price of single-family homes (-9.4%) as with the floors (-6.1%). Meanly, the price per square meter of free-priced flats was reduced by 6.1%. Among these, the price of second-hand flats stood at 1,479 euros (-12.5% year-on-year) and new flats at 2,346 euros (+10.7% year-on-year). In July the sale of other properties stood at 12,611 operations (-2.6% year-on-year), of which 45% corresponded to land or plots. The average price per square meter of these transactions stood at 153 euros, 31.2% less.

THE HOUSING LOANS YIELD 4.8%

In line with the decline in sales, the number of new mortgage loans made in July recorded a year-on-year decline of 4.8%, to 28,118. The average amount of such loans was EUR 176,941, a fall of 23.9% year-on-year. For its part, mortgage loans for the acquisition of a property fell by 4.8% year-on-year (22,676 loans) in July, due both to the fall in the granting of loans for the acquisition of a home (-3.3% year-on-year) and the decrease in mortgage loans for the acquisition of other properties (-25.5% year-on-year). The average amount of loans for the acquisition of a property reached 149,721 euros, 12.9% less than in July last year. In the case of housing, the average capital was 144,792 euros, representing a decrease of 12.9% year-on-year, and for the rest of the properties the average loan reached 229,214 euros, in this case a decrease of 28.5% year-on-year. The percentage of home purchases financed by a home loan in June stood at 44.1%. In addition, in such purchases with financing, the amount of the loan averaged 72.8%.

LESS LOANS FOR CONSTRUCTION OF REAL ESTATE

For their part, loans for construction showed in July a year-on-year increase of 32.5%, up to 578 operations; while the average amount was EUR 465,281, thus collecting a year-on-year contraction of 52.2%. In addition, the average amount of loans for the construction of a house was reduced by 54.4%, to EUR 248,033, with 473 operations signed in June. Finally, mortgage lending to finance business activities experienced a sharp year-on-year decline of 36.5%, to 228 operations, and their amount fell by 55.9% year-on-year, to EUR 857,670.