Home Sales Increased by 1.4% in Q3 and Prices Remained Stable

iStock_000009701970XSmallThe latest statistics from the Spanish Property Registrars show that a total of 79,561 home sales transactions were carried out in the third quarter of the year, which is an increase of 1.4% over the previous quarter, and significantly higher than the minimum recorded in the fourth quarter of 2013, when 72,560 sales were closed.

Apart from the excellent results registered for the first quarter of 2014, when 83,022 home sales transactions were completed, the volume of home sales recorded in the third quarter is the second best result over the last six quarters, and was due “exclusively” to the number of transactions relating to resale housing, which reached a total of 52,127 sales. This represented a quarter-on-quarter increase of 8.92%, and almost double the transactions for new housing, which fell by 10.36% over the previous quarter, to a total of 27,434 purchases.

The region of Andalucía recorded the largest number of home sales in the quarter, with a total of 16,006 transactions closed, followed by Valencia (12,189), Catalonia (11,975) and Madrid (10,883).

Housing prices remained relatively stable, registering a negligible variation over the previous quarter, of just -0.08%, while year-on-year the prices registered an increase of 1.15%. Since the maximum levels of 2007, prices have accumulated a decline of 32.4%.

According to the Registrars, the favourable results of recent quarters have been predominantly due to the reduction in prices and an increase in foreign buyers. In fact, the purchase of homes by foreign buyers stood at 13.1% in the third quarter, reaching a new all-time high, demonstrating “the strengthening of the confidence of foreign citizens in the Spanish real estate market,” noted the Registrars.

With respect to previous quarters, Diario Sur reported that seven nationalities remained the most active in the purchase of Spanish homes. The British home buyers accounted for 18% of the total number of homes purchased by foreign buyers, followed by the French (10.4%), Russians (7.5%), Germans (6.4%), Belgians (6.1%), Swedish (6%) and Italians (4.1%).