More homes sold in Spain breaking 2008 record

by Lorraine Williamson
new homes sold

MALAGA – In September 53,410 homes were sold in Spain, the highest number in the past 13.5 years. Experts attribute this new peak to the delayed purchase intention and the changing housing preferences during the corona pandemic. 

The economic recovery also contributed to the positive developments in the housing market: in the past seven months, there was growth compared to the same period last year. In fact, more homes were sold in the past four months than in the same period in 2019, the year before the pandemic. 

Last September, the number of homes sold was no less than 40.6% higher than in September of last year. According to statistics agency INE, 38% more houses were sold in the first nine months of this year than in the same period last year. However, this means that activity in the housing market has not yet fully returned to its former level this year. 

Tailwind 

That will not last very long, because the Spanish real estate market is currently having the wind at its back. The pandemic and the prolonged lockdown have ensured that Spaniards now consider their living situation more important than ever. In addition, the current low mortgage interest and the increased savings of the Spaniards ensure that they decide more quickly to buy a new home. 

Shortage of new-build homes 

According to data from the INE, many existing homes were sold in particular, there were 42,477 in September. This is the highest number since May 2007. Almost 11,000 new-build homes were sold in September, which is the same number as in September 2013. The fact that more existing homes were sold is mainly due to the current shortage of new-build homes. 

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Houses 5% more expensive 

If this shortage eventually leads to sharp price increases, alarm bells will ring again in the real estate market. But for now, according to analysts, it is a ‘boom’ and not a ‘burbuja’ (real estate bubble) as was the case in 2008. Furthermore, house prices are expected to rise by 5% this year as a result of increased demand. 

As was the case before September, it was mainly homes from the free sector that were given new owners. The percentage of housing subsidised by the government has traditionally remained below ten%. 

Most houses sold in Andalucia 

The housing market did not increase to the same extent in all Spanish regions. In Extremadura, for example, fewer houses were sold in September (-2.4 percent) compared to the same month a year ago. The least growth was registered in the Asturias region at 1.4%. In Murcia, Castile-La Mancha and Madrid the growth rate is around 20%, and in the Basque Country, Catalonia, and Andalucia around 55%. Navarra is number one, where in September even 70% more houses were bought compared to a year ago. 

In absolute numbers, the most sales contracts were signed in September in Andalucia (11,843), followed by Catalonia (8,396), Valencia (7,617) and Madrid (7,071). 

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