Mortgage Activity in Spain Increased in November by 32%

The Costa del Sol continues its recovery

Mortgage Activity in Spain Increased in November by 32%

November was an incredible month for the Spanish property market given the 32% growth month-on-month.

As the stats for the end of 2016 start coming in, it’s increasingly clear that the year was a successful one for Spain in a number of ways. The country saw considerable improvement in tourism to the economy as a whole. No industry has seen the level of positivity that the property industry has though.

The central statistics unit of the Spanish government shows that there was a 32% increase in mortgage approvals in November 2016 compared to November 2015. Overall 25.413 mortgages were approved in the month.

This would be encouraging by itself, but when you also consider the greater trends as a whole, it becomes a stronger sign of success. Overall there was a 15% increase in mortgage approvals during the first 11 months of 2016 compared to the same time period in 2015; reaching a total of 260,581.

It’s expected that December will see this total figure increased by over 20,000 for the full year-end total.

If there are that many mortgage approvals in December, it means that there were over 280,000 mortgages approved in 2016 across Spain. While the idea of a “healthy” number has become a little skewed by the boom-and-bust nature of the real estate sector in Spain, there’s still plenty of steady growth, and that’s encouraging.

Here is something to consider; There were over 100,000 mortgages approved per month for much of the last peak for the Spanish property market. That covers 2005 and 2007. This changed a lot after the depression settled in as only 12,000 mortgages were approved in August 2013.

It was impossible to maintain the higher figure, but the smaller figure is just too low. That’s why steady growth somewhere in the middle is just right. At least for now.

All 17 Spanish Regions Record Increase in Property Sales in November

All 17 Spanish Regions Record Increase in Property Sales in November

Spain continues its property recovery

Every one of the 17 autonomous communities in Spain recorded an increase in property sales during November 2016 compared to 2015, according to the latest data from the National Statistics Institute (INE).

While some less-famous Spanish regions had the occasional sales slump, this clean-sweep of November growth shows just how far the Spanish property market has come in 2016. The total rise of properties sold in November was 17.3% higher in 2016 compared to 2015; for a total of 33,806 property transactions.

The pace of the growth varied from region to region. Home sales in the Balearics were up 32.8% over the space of a year, with the Canary Islands experiencing a 26.3% increase and Aragon and Asturias reporting 25% growth.

When looking at the 11 months of 2016 leading up to November, the data from the INE shows an increase of 14.6% in sales activity compared to the same 11 month period in 2015, as some 372,000 homes changed hands.

The data from November is no different from the other months. Outside of the occasional blip, Spanish property sales have increased month-on-month for almost 26 straight months.

This reversal of fortunes is a great sign of just how much confidence there is in the sector – driven by both an increase in domestic demand and the ever-present desire for foreigners looking to have their own second home in the Spanish sun.

November Prices Remain Stable in Popular Regions of Spain

November Prices Remain Stable in Popular Regions of Spain

The Costa del Sol enjoy the recover better than others

The property prices in the more popular regions of Spainhave stayed at a stable level in the November price index, although 11 of the autonomous regions of the country saw average prices dip a little.

The Canary Islands and the Balearics were as popular as ever with prices slightly increasing, as well as increases in Murcia and Andalucía. However the average price for property in Spain fell 1.1% in November over October. Experts agree that this could be a seasonal dip and is very small.

While there has been some uniformity in Spanish property price trends – as prices are generally on the increase – the demand for property is different for some regions. The prices for homes in Castilla-La Mancha for example went down by 1.5% in November. There was also a 1.3% price drop in Catalynya, but there was an average price increase of 1.7% in Barcelona.

The Costa del sol has always been the most popular and robust region in the country for property, with the average price for property increasing in November by over 1%.

Even though there were some slight dips in property prices for the less popular regions of Spain the year as a whole has been great for the property market in Spain. The amount of homes sold has gone up each month and there are more foreign buyers than before, as well as the younger generation in Spain entering the property market thanks to an improved job market and mortgage availability.

The economy minister of Spain Luis de Guindos spoke about the recovery of Spain, saying that the country has the advantage now that the political uncertainty has finally ended. The data would certainly seem to back these claims as GDP could reach 3.2% in 2016. Unemployment is also improving and is down to 18.9%. The government that was behind the economic recovery of Spain in the first place is back in charge and ready to keep the course steady.

The president of the Spanish banking association AEB, José María Roldán said that the measures taken during the crisis are really paying off. There are a lot more jobs and the cost of living has stay low with growth beening strong, showing how effective the reforms have been. Mr Roldán added that the country needed to maintain their course as repealing and reversing the reforms would be suicidal for the country.