Some sort of green shoots grow in the Spanish housing market

Spanish housing sector, crucial for Spain’s economy, continued to be very depressed, as shown by first nine months figures: only 26,000 houses has been validated, which means 26% less than previous year same period. This will lead housing market to finish current year with a new record low around 35,000 approved properties, very far from the overwhelming 860.000 in 2006 and those yearly average of 300,000 since 1970.

However these global numbers, authorized houses’ fall has been moderated or even neutralized by increases in some cities, specifically in which demand recover is performing better. Regarding sales, the number of transactions will register a minimum level near 300,000 houses at the end of 2013 due to foreign demand increase and new investments.

Furthermore, sale operations without financing are increasing, and when cross-matching statistical data about mortgages per transaction, it is observed a rate decrease from 1.4 before crisis to current 0.6. First-time home buyers demand has especially reduced
 and will recover only as job market improves, of course considering low demographic pressure. In fact, during last year, number of households cut by 79,000.

Housing prices’ depreciation has moderated significantly during the last two quarters by a 36% adjustment in real terms. In fact, they just fell by 0.5% in third quarter, the lowest drop since the price adjustment began, having increases in some cities


At the start of her new

About the Author

Carlos Díaz Guell
Editor at and, Carlos began his career in financial journalism as founding member of El País. He's been communications director of Bank of Spain, member of the ECC at the European Central Bank, Institutional Relations director at Iberia and editor at La Economía 16 magazine.

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