Residential real estate in Spain experienced a vibrant decline in April, painting the market with hues of change. While home sales dipped housing prices defied expectations by displaying a steady rise.
The residential market has changed a course in April. Home sales dropped by 20.7% compared to the previous year across all Autonomous Communities, with La Rioja (-33.6%), Canary Islands (-29%), and Madrid (-28.9%) experiencing the most significant declines, according to the General Council of Notaries.
Additionally, mortgage grants also decreased by 31.9% year-on-year, with Navarra, Cantabria, and Catalonia leading the decline. However, the average price per square meter remained steady, rising by 0.9% across Spain to reach 1,622 euros.
Decline in home sales across all Autonomous Communities
According to the report, In April, both apartment and villa sales experienced a decrease. Apartment purchases decreased by 20.2% year-on-year, reaching 38,269 units, while single-family home sales dropped by 22.3% to reach 11,370 units.
Home purchases declined throughout the contry, with the best performance recorded in Murcia, showing a 9.3% year-on-year decrease. The Autonomous Communities that had above average figures (-20.7%) were: Aragón (-20.4%), Valencian Community (-15.7%), Extremadura (-14.8%), Castilla-La Mancha (-12.8%), Galicia (-10.2%), and Castilla y León (-9.8%).
The more serouos declines occurred in the remaining Autonomous Communities: La Rioja (-33.6%), Canary Islands (-29.0%), Madrid (-28.9%), Basque Country (-25.1%), Navarra (25.0%), Balearic Islands (-23.7%), Andalusia (-22.4%), Asturias (-22.4%), Catalonia (-21.9%), and Cantabria (-21.4%).
Decline in number of approved mortgages
The decline in home purchases is accompanied by a decrease in mortgage grants for homebuying. In April, there were 31.9% fewer loans granted compared to the previous year, totaling 21,884 transactions. The average amount of these loans decreased by 6.4%, reaching an average of 142,306 euros.
The percentage of home purchases financed through a mortgage loan stood at 44.1%. In these financed transactions, the loan amount represented, on average, 70.6% of the property price.
Mortgage loans for home acquisition declined for the fifth consecutive month across all autonomous regions.
Decreases below the national average were observed in: Basque Country (-31.8%), Andalusia (-31.5%), Castilla-La Mancha (-29.1%), Asturias (-28.5%), Galicia (-28.5%), Valencian Community (-25.3%), Murcia (-24.9%), Aragón (-24.3%), Canary Islands (-22.3%), La Rioja (-21.4%), and Balearic Islands (-12.9%). The Autonomous Communities with rates surpassing the national average were: Navarra (48.0%), Cantabria (-39.8%), Catalonia (-39.1%), Extremadura (-35.8%), Castilla y León (-34.7%), and Madrid (-34.2%).
Regarding the average amount of new mortgage loans for home acquisition, the evolution varied across Autonomous Communities. It increased in two and decreased in the remaining 15. Noteworthy increases were observed in La Rioja (14.2%) and Canary Islands (4.5%), while decreases were seen in Extremadura (-18.3%) and Castilla y León (-13.9%).
Still no decline in house prices
In Spain, the price per square meter increased by 0.9% compared to the previous year, reaching 1,622 euros. Fifteen autonomous regions witnessed an increase in housing prices, while the remaining two experienced a decrease.
The Autonomous Communities that saw the highest price increases were Castilla-La Mancha (20.3%), Aragón (17.2%), Canary Islands (12.6%), and Asturias (11.7%). Conversely, housing prices decreased in La Rioja (-9.5%) and Basque Country (-1.6%).
In terms of property type, apartment prices saw a slight decline of 0.2%, reaching 1,787 euros per square meter, while the price of single-family homes increased by 1.5% to reach 1,308 euros per square meter.
This article is brought to you by Expat Hub Valencia, a property buying agent in Valencia. Using the Expat Hub’s services, you will be able to successfully navigate Valencia’s complicated property market in no time.