Home Sales Rose by 12.8% in October

According to the latest report published by the National Statistics Institute, home sales increased by 12.8% in October, to a total of 25,261 transactions. Of these transactions, 50.7% were for previously owned homes and 49.3% related to new builds.

The year-on-year rise in home purchases registered in October is the third in a row after the increases recorded in August and September, of 3% and 0.9%, respectively, after a negative run of 17 months.

This increase in property sales, which was far superior to that achieved in September, comes before the end of the income tax deduction for home purchases and of the ‘super-reduced’ 4% VAT for the purchase of a new home, effective from the beginning of 2013.

The October increase was due both to resales as well as new homes, although transactions on the latter saw a greater increase. Specifically, sales of previously owned homes rose by 11.1% in October year-on-year, to 12,818 transactions, while sales of new homes grew by 14.7%, and reached 12,443 transactions.

El Economista reported that most of the home purchases carried out during the tenth month of the year, namely 89%, were for private housing, increasing by 13.8% year-on-year to 22,489 transactions, while the total number of transactions for public housing came to 2,772, with a rise of 5.4% compared to October 2011.

Month-on-month (October over September), homes sales fell by 2.8%, compared to a drop of 6.2% experienced in September. This monthly decrease in the tenth month of the year is the least pronounced drop recorded in this month since 2008, and is far from the 24% month-on-month reduction experienced in 2010, the year which registered the worst data of the last five years.

During the first ten months of the year, house sales accumulated a decrease of 12.8%, with declines of 10.5% in new housing transactions and 14.9% in previously owned homes.

In October, the highest number of house sales per 100,000 population were registered in La Rioja (105) and Valencia (93).

More than 61% of the house sales carried out in the tenth month of 2012 were recorded in Andalusia (5,323 transactions), Valencia (3,818), Catalonia (3,404) and Madrid (2,893). The regions with fewest house sales in October were Navarra (224 transactions), La Rioja (271) and Cantabria (305).

The regions with the greatest year-on-year increases in housing sales were Castilla-La Mancha (+34.8%) and the Balearic Islands (+30.1%), while those showing the greatest declines year-on-year were Navarra (-36%) and Cantabria (-16.7%).