Homes Sales Rose by 1.1% Y-o-Y in July

As a result of the Supreme Court’s ruling in June over the controversial mortgage ground clause, where the registration of some mortgages were deferred awaiting correction, the increase in home sales in Spain slowed to just 1.1% in July, over the same month of 2015, reaching a total of 33,084 transactions, according to the latest Transfer of Property Rights data published last week by the National Statistics Institute.

Despite this, the upward trend in home sales continued in July, and followed the increase of 19.4% which was registered in June, over the same month of the previous year. In fact the July increase would have been even greater than this if not for the court ruling.

With the July increase, home sales in Span accumulated six consecutive months of year-on-year increases.

Sales of second hand homes were responsible for the July increase, with the number of transactions rising by 2.9% year-on-year, reaching a total of 27,089 sales, while sales of new housing registered a 6.5% decline, year-on-year, to just 5,995 transactions.

In monthly terms (July over June), home sales fell by 10.2%.

In July, the greatest number of home sales per 100,000 inhabitants were registered in Valencia (125), followed by the Balearic Islands (123) and Catalonia (102), while Andalucía was the region to record the most home sales in absolute terms, with 6,588 transactions, followed by Catalonia (5,911), Valencia (4,889) and Madrid (4,601).

In contrast, the fewest number of home sales were registered in the regions of La Rioja (183), Navarra (307) and Cantabria (385).

In relative terms, the regions which registered the greatest year-on-year increases in home sales were Asturias and Extremadura, both with increases of 21.4%, followed by the Balearic Islands, which recorded a rise of 14.7%. In contrast, the regions to register the greatest declines in home sales in July were La Rioja (-23.1%), Navarra (-14.2%) and the Basque Country (-13.8%).