Home sales crashed and property prices plunged in October according to the latest data from the General Council of Notaries.
Residential property sales fell 8.9pc year-on-year in October to 28,418, and 10.6pc after seasonal adjustment, according to the notaries.
Year-to-date (first 10 months), house sales are down 11.3pc compared to the same time last year.
House prices fell 10.5pc in the same period, the fortieth consecutive month of decline, with the exception of August (when prices case a stir by rising 0.6pc). The average cost of housing in Spain now stands at 1,204 €/m2, down 36.2pc from the peak in July 2007.
New mortgage lending dived 22.5pc in October, with the average new mortgage down 5.2pc in value.
But I’m sticking to my opinion that 2013 will turn out to be the bottom of the market. I forecast that transactions will increase next year, and though average prices will continue falling, the rate of decline will decrease significantly, moving into positive territory in 2015.
…quite remarkable that one report states house sales down, and in the same news letter a different report states house sales up! What a topsy – turvey phenomena Spanish official figures are!
Elaine, house prices, not house sales, but yes, unreliable figures are a big part of the problem.
Mark, we made the plunge to buy in November and will complete in January 2014 and we used 3 agents to view with who were all very busy so your forecast for 2014 looks about right.
Anne and David Bell Carlisle U.K.
Are house prices coming down still in the costas ,(costa del sol costa almeria) anybody and there dog involved in the housing market state property is selling and prices are starting to rise.
Mike, it depends where on the coast. I think prices are still soft in most places , but there may be pockets, like prime Marbella and Ibiza, where they aren’t falling anymore. It also depends on the segment: vendors in upmarket segments have stronger pricing power. However, I can report the market on the coast is far from dead. There is a lot my buyer interest than before, which will bring a floor under prices as the inventory clears.