Home Sales Fell in November After Three Months of Increases

The sale of homes fell 6.1% in November compared to the same month of 2011, to a total of 25,655 transactions, 50.8% of which related to previously owned homes, and 49.2% to new builds, the National Statistics Institute said in their latest report released on Monday.

The decline in housing sales recorded in November 2012 ended three consecutive months of year-on-year increases (August, September and October).

This positive trend, which came after 17 months of declines, was attributed to the end of the tax benefits for new house purchases which came into force from 1st January this year.

However, that does not seem to have influenced the sales in November as the figures fell once again. The November result was due to a decline both in previously owned as well as new homes, although transactions for the latter fell somewhat less.

Specifically, El Economista reported that sales of previously owned homes fell by 5.9% in November year-on-year, to 13,044 transactions, while sales of new homes fell by 6.3%, to 12,611 transactions.

The majority of the property transactions carried out during the penultimate month of last year, namely 89.5%, were for private housing. In total, the sale of such homes fell by 3.5% to 22,972 transactions, while the number of public housing transactions came to 2,683, representing a decrease of 24% compared to November 2011.

Month-on-month (November over October), housing sales rose 1.6%. The monthly figure for November of last year is the least registered in this month since 2009 and is far from the monthly advances of 22% and 17.4% experienced in 2011 and 2010, respectively.

In the first eleven months of last year, house sales accumulated a decline of 12.3%, with a drop of 10.2% in new housing transactions and 14.2% for previously owned homes.

Most Sales Registered in Andalusia

In November 2012, the highest number of house sales per 100,000 inhabitants were recorded in La Rioja (132) and Cantabria (98).

Over 60% of the house sales carried out in November 2012 were recorded in Andalusia (5,115 operations), Valencia (3,912), Catalonia (3,490) and Madrid (3,103).