Sales of new-buid homes fell 4.2% in April
The latest data from the INE shows that property sales in Spain fell by 8.1% in April, when compared to the previous year.
86.5% of those property sales correspond to urban properties, of which, 57.9% were sales of homes. The sales of all urban properties fell 8.2% while sales of rustic property also fell, dropping 10%.
Of the homes sold in April, 19.1% were new homes and 80.9% were second-hand properties, according to the INE data.
The number of new home sales fell by 4.2% when compared to the same month last year. Sales us used homes also fell, dropping 9% since last April.
Autonomous Communities
In the month of April, the total number of transferred properties in the property registers per 100,000 inhabitants reached its highest values in Castilla y León (666), Cantabria (598) and Aragón (596).
Cantabria (14.3%), Extremadura (0.8%) and Valencian Community (0.3%) registered the only positive annual variation rates.
The Balearic Islands (–20.7%), Canary Islands (–20.0%) and La Rioja (–19.6%) presented the lowest annual rates.
Considering registered home sales, the communities with the highest number of sales per 100,000 inhabitants are the Valencian Community (166), Cantabria (135) and Andalucía (131).
The autonomous communities that presented the greatest annual increases in the number of home sales in April were Cantabria (11.6%), the Valencian Community (6.0%) and Extremadura (3.7%).
In turn, the Basque Country (–23.4%), the Balearic Islands (–19.6%) and La Rioja (–18.6%) registered the greatest decreases.
House Prices in Spain
The fall in sales of homes in Spain has many factors, but one is the continuing rise in prices. The price of housing increased 10.2% year-on-year in May.
The monthly variation in the price of second-hand homes for sale in Spain increased by 0.8%, bringing the average price per square metre to 2,131 euros in May, according to data from Fotocasa. This last year-on-year value (10.2%) is the highest increase detected since August 2006.
“The cost of housing continues to become more expensive at an increasing rate and setting records. In other words, we are facing a cycle of very significant increases and they are in many cases the highest since 2006. The price is increasing at a very fast pace, making the situation of the second-hand market increasingly more complicated, with a very strong and intense demand and with a reduced supply. However, this price acceleration, caused by the change in monetary policy, should be temporary and begin to show signs of moderation in the coming months, as the demand for purchases cools off due to difficulties in accessing financing and inflationary tensions“, explained María Matos, Director of Studies at Fotocasa.
When we look at the prices of homes for sale compared to those of a year ago, we see that 17 communities saw increased prices in May. In six communities, those increases exceed 10%, specifically, in the Balearic Islands (22.7%), Navarra (20.2%), the Canary Islands (17.9%), the Valencian Community (12.0%), La Rioja (10.5%) and Andalusia (10.2%). They are followed by the Region of Murcia (9.3%), Catalonia (6.4%), Cantabria (5.4%), Aragon (5.3%), Extremadura (4.8%), Castilla-La Mancha (4.8 %), Madrid (4.7%), Galicia (3.4%), Castilla y León (3.0%), the Basque Country (2.7%) and Asturias (2.3%).
Prices in Autonomous Communities
Regarding the ranking of Autonomous Communities with the most expensive second-hand home prices in Spain, are the Balearic Islands and Madrid, with prices of €3,679 p/m² and €3,446 p/m², respectively. They are followed by the Basque Country (€2,968 p/m²), Catalonia (€2,744 p/m²), the Canary Islands (€2,123 p/m²), Navarra (€2,012 p/m²), Andalusia (€1,897 p/m²), Cantabria (€1,863 p/m²), Aragon (€1,692 p/m²), Galicia (€1,672 p/m²), Valencian Community (€1,646 p/m²), Asturias (€1,607 p/m²), La Rioja (€1,597 p/m²), Castilla y León (€1,466 p/m²), Region of Murcia (€1,249 p/m²), Extremadura (€1,215 p/m²) and Castilla-La Mancha (€1,169 p/m²).
Provinces
In 94% of the 50 provinces analysed, the interannual price of housing rose in the month of May. In 14 provinces it exceeds 10%, specifically in the Balearic Islands (22.7%), Santa Cruz de Tenerife (21.6%), Navarra (20.2%), Alicante (15.9%), Malaga (15.5%), Las Palmas (14.2%), Cádiz (12.1%), Guadalajara (12.0%), Tarragona (11.6%), Almería (10.7%), Huesca (10.6%), La Rioja (10.5%), Seville (10.2%) and Girona (10.1%). On the other hand, the interannual decreases correspond to the provinces of Palencia (-1.4%), Jaén (-0.2%) and Zamora (-0.1%).
Regarding prices, the Balearic Islands is the most expensive province with €3,679 p/m², followed by Madrid (€3,446 p/m²) and Gipuzkoa (€3,272 p/m²), among others. On the other hand, the province with the price per square meter below 1,000 euros is Ciudad Real with €973 p/m².
