Home Resales Rise 1.7% in Third Quarter

The total number of homes sold in the third quarter (75,642), reduces the rate of decline to 1.17% year-on-year, the lowest of the past seven quarters, according to the statistics of property transactions for the third quarter of 2012 released on Wednesday. Purchases by foreign residents increased by 18%.

According to the Spanish Government’s Ministry of Public Works, the results of statistics on residential property transactions made before a notary show that in the third quarter of 2012, 75,642 homes were sold in Spain, which represents a decrease of 10.26% over the previous quarter and of 1.17% compared to the third quarter of 2011. The annual figure is the lowest produced in a quarter since the fourth quarter of 2010.

In the last twelve months – October 2011 to September 2012 – residential property transactions made before a notary reached a total of 336,724.

24,267 new housing transactions were carried out, representing 32.1% of the total for the quarter while, with 51,375 properties sold, resales registered an increase of 1.7% in annual terms.

The territorial distribution of these transactions is quite diverse as nine regions recorded positive annual variations.

The largest increases were registered in La Rioja (56.1%), Catalonia (8.7%), Valencia (8.0%) and Asturias (7.0%), while at the other extreme, the greatest declines were registered in Navarra (-51.7%), the Basque Country (-33.8%), Extremadura (-22.2%) and Castilla y León (-12.6%).

25 provinces recorded year-on-year growth. Highlighted among them were La Rioja with an increase of 56.1%, Cuenca (34.6%), Tarragona (29.0%) and Segovia, with an increase of 19.5%.

At the other end, 27 provinces registered negative annual data. Highlighted in this section were Guipúzcoa with a decrease of 46.8%, Cáceres (-29.2%), León (-28.1%), Vizcaya (-26.4%) and Álava (-24.1%).

The municipalities which recorded the greatest number of sales were Madrid (3,719), Barcelona (1,931), Seville (1,120), Zaragoza (1,014) and Valencia (974).

Provincial capitals and municipalities with more than 100,000 inhabitants which also stood out for growth were San Cristóbal de La Laguna (215.7%), Logroño (208.1%), Getafe (135.0%), Tarragona (108.1%), Cuenca (103.8%), and Leganés (103.6%). The biggest declines were registered in Bilbao (-42.3%), Fuenlabrada (-38.5%), Jaén (-37.5%), Pontevedra (-35.1%), Pamplona (-32.8%) and Móstoles (-32.6%).

Increase in Foreign Buyers

Transactions carried out by foreign residents in Spain experienced growth for the fifth consecutive quarter, increasing by 18.0% over the third quarter of 2011, with a total of 8,803 purchases.

The provinces which recorded the highest number of purchases by foreigners were Alicante (2,501), Malaga (1,111), Barcelona (692), Balearic Islands (605) and Girona (586).