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Notaries suggest that the housing market is stabilizing after a January of growth

The number of housing sales recorded in January showed a year-to-year increase of 59.2% ( 23,368 transactions), while prices recovered 8.9%, according to statistics from the General Council of Notaries, which indicates that a normalization is happening in the housing market after the end of financial incentives for housing purchases at the start of 2013.

By property type, sales of flats showed a year-to-year increase of 55%, while sales of single-family homes recovered by almost 80%.  Likewise, sales of second-hand homes grew 48.5%, to 15,085, while newly constructed homes reached 2,717, which is double that of the same month one year ago.

Notaries point out that the average price per square metre experienced a “strong” spurt in January, which breaks the downward trend from past months.  As such, the average price of houses sold was 1,294 euros per square metre, which is 8.9% more.

In the case of flats, this increase was raised to 12.1%, to 1,421 euros per square metre, while the average price of single-family homes was situated around 1,038 euros per square metre, 2.7% more than in January a year ago.

The notary statistics show that mortgages support market improvement, although the concession of new loans continues to be negative.  As such, the number of mortgage loans signed in the month of January was 16,721, which is still a decrease of 6% from one year to the next.  In the case of houses, the average price was 113,966 euros, 6% more.

Lastly, the percentage of home sales financed through a mortgage company was 33.3%.  In addition, within this type of purchase with financing, the amount of the loan involved, on average, 73.9% of the price of the home, somewhat more than in last months.

 

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