Wednesday, 8 October 2014

Spanish property purchases show a decline in August

Buyers in Spain decrease in August.

After the buoyant month of July it has come as a bit of a suprise that the transfer of properties in Spain declined in August.

Many parties involved in house transactions like Spanish Lawyers, Developers and Mortgage brokers had reported they expected the upturn in house sales to continue.

So is August a blip 

It is normal for the level of sales between the months of July to August to reduce,this is part of the normal market conditions. What is not the normal trend is that the decline should be so high and what is a suprise is that the figures are down on August 2013 as well as month on month.

Whether this decline will continue is diffcult to say but it is true that the number of offers on properties and general level of numbers of purchasers looking to buy in Spain remains reportedly good. The lead time from offer to completion has extended, this can due to a number of factors including more diligent legal checks being undertaken and the securing of a Spanish Mortgage. Given the data is extracted from Land Registry which is right at the back end of the buying process it could be the figures just reflect other issues rather than lack of sales.

New builds versus resales

What is undeniable is that of the 1.1% decline in sales of dwellings against last years figures the sale of second hand property is not the problem. Resales were actually up 15.2% but new builds decreased by 22.1% which is really bad news for Development companies and Spanish Banks both of which hold high levels of new property stock.

Total sales

In August 47,193 properties transferred title. Of this 23,525 were actual sales the rest being made up of swaps, donations, inheritance and others. In others sits the transfer of property under repossession, in August 12,947 dwellings moved on this basis.

Read the full article: Conveyance of Spanish Houses in August


No comments:

Post a Comment