Homes Sales Up 5.4% in May Year-on-Year

The National Institute of Statistics reported on Wednesday that home sales in Spain rose by 5.4% in May, over the same month of 2013, to a total of 28,124 transactions, thanks to a boost in the second hand market.

The year-on-year increase in May is the third consecutive rise registered after those recorded in March and April, when home sales rose by more than 22% and 5%, respectively, ending ten consecutive months of year-on-year declines.

Looking at only the monthly data (May over April), housing sales increased by 12.6%, the same percentage increase as in May 2013.

The annual growth in housing sales was due to the 16% increase in the sale of second-hand homes, which amounted to 17,253 transactions, the best figure since January 2013. In contrast, sales of new homes fell by 8% year-on-year to 10,871 transactions.

In May, the majority of home sales, namely 90%, were for private housing. The sale of such housing grew by 5% year-on-year, to 25,306 transactions, while transactions on social housing totalled 2,818, recording an increase of 8.9% compared to May 2013.

In the first five months of the year, housing sales accumulated a decline of 7.7%, with a drop of 16.8% in transactions involving new housing and a slight increase, of 0.7%, in the second hand housing transactions. Meanwhile, sales of social housing fell by 18.1% through to May, while private housing sales fell by 6.3%.

In May, the highest number of home sales per 100,000 population were registered in Valencia (107). Andalusia remained in the lead for home sales in the fifth month of the year, with 5,761 transactions, followed by Valencia (4,377), Catalonia (4,196) and Madrid (3,433).

The regions which registered the fewest home sales in May were La Rioja (207), Navarra (368) and Asturias (445).

In relative terms, the regions where home sales increased most year-on-year were the Balearic Islands (+33.1%), Navarra (+32.9%) and Cantabria (+30.4%), while the only declines registered were for Castilla-La Mancha (-15.2%), Galicia (-6%) and Madrid (-5.5%).

Adding together the rural and urban properties (houses and other properties of an urban nature), the property transfers in May reached a total of 137,167, representing a decrease of 4.5% over the same month of 2013.

According to the National Institute of Statistics’ data, the number of purchases of rural properties increased by 7.1% in May year-on-year, while that of urban properties (which include housing) rose by 0.6%.

El Economista reported that, in May, the total number of property transfers per 100,000 population was highest in Aragon (614), Castilla y León (597) and La Rioja (588), and the regions where these transactions increased most were the Balearic Islands (+15.6%), Extremadura (+5.5%) and Navarra (+3.2%). In contrast, the most pronounced declines were registered for La Rioja (-35%) and Cantabria (-27.6%).