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Home sales in November: a more moderate growth of only 2.8%

January 16, 2019

Home sales have risen by 2.8% in the month of November 2018 when compared to November 2017 with 42,510 sales transactions completed, as reported by the Spanish National Institute of Statistics (INE).

The interannual sales growth of November (eight consecutive month of growth), is significantly lower than that achieved in the month of October – 15.8%, which was a growth record for this month in the past 11 years.

Transactions of second hand homes increased by 1.6% in November when compared to the same month in 2017 with 34,107 sales, while the sale of new homes increased by 7.9% from 2017 to a total of 8,043 transactions.

90.4% of purchased homes in the penultimate month of 2018 were free-market dwellings and 9.6% social housing. The sales of free-market homes increased by 1.9% last November on a year on year basis, to a total of 38,084 transactions, while the sales of subsidized housing have gone up by 11.3%, to a total of 4,066 transactions.

In monthly terms (November 2018 compared to October 2018), home sales have declined by 3.2%, the biggest drop in the month of November since 2014.

 

Housing market according to INE

 

 

 

 

“The housing market activity returns to pre-crisis levels”

The data from last November contrasts with more dynamic growth rates recorded in the previous months. The lower growth in sales transactions would be related to the trend towards market stabilization and slowdown of the economic growth, which has been taking place in the last months of 2018.

“The housing market continues to demonstrate good figures, but there is a moderation in the activity that is marked by the regions that until now had concentrated the greatest dynamism in the market, such as Madrid, Catalonia and the Balearic islands. It is precisely in these regions that the highest increases in the price of housing have been registered, with year on year increases that exceeded 10% “, explains Beatriz Toribio, director of Fotocasa Studies.

Nevertheless, Beatriz Toribio stresses, “The market heath is good. The activity continues to grow and we will end the year with close to 520,000 sales transactions, which would be 12% more than in 2017, surpassing for the first time the barrier of half a million sales since 2008.”

For the real estate portal Fotocasa, these data show that “the housing market returns to levels prior to the crisis, although there is some moderation in activity in the last months of the year as a result of a lower growth of the economy, seasonal decline in tourism and the international context.”

 

Andalusia, the region with most sales

Last November, the highest number of home sales per 100,000 inhabitants were completed in the Autonomous Community of Valencia (168) followed by La Rioja (144) and Cantabria (128).

Andalusia was the region with the highest number of housing transaction in the penultimate month of 2018, with 7,950 purchases, followed by Catalonia (6,681), the Autonomous Community of Valencia (6,593) and Madrid (6,317).

The greatest year on year growth in home sales was registered in Cantabria (+ 30.3%), La Rioja (+ 28.8%) and Castilla-La Mancha (+ 26.6%). Declines in growth were seen in the Balearic Islands (-7.2%), Andalusia (-5.9%), Extremadura (-5%), Castilla y León (-2.5%) and Catalonia (-0.1%).

The total number of property transfers goes up by 9.4%

Adding up rural and urban properties (houses and other real estate properties like land and buildings), the total amount of property transfers last November reached 170,271, which is 9.4% higher than that registered in the same month of 2017.

Through sale, 4% more properties were transferred than in November 2017 and 15.8% more through donation, 1.9% more through inheritance; while swap transactions fell by 1.6%.

According to INE, the number of rural properties purchases fell by 3.7% in November, to a total of 11,513 transactions, while the purchases of urban properties increased by 5.3%, to 73,835 transactions. In November, the highest number of properties transmitted per 100,000 inhabitants occurred in La Rioja (723), Castilla y León (718) and the Autonomous Community of Valencia (610).

The largest year on year growth in the number of properties transferred in November was registered in Madrid (+ 21.7%), Cantabria (+ 19.6%) and La Rioja (+ 19.4%), while the only decreases were in Aragón (-11.7%), Balearic Islands (-6%) and Extremadura (-4.4%).

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