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House Prices Fall by 14.7% in September Year on Year

Posted on by peteradmin247

Home sales in September fell by 9.2% year-on-year (apartments by 13.1%), despite the fact that, in the same month, housing prices fell by 14.7% compared to September 2012, registering a record low since the start of the crisis of 1,162 euros per square metre, according to the latest statistics published by the General Council of Notaries.

The reason they give for this is that the granting of new loans for house purchases fell by 17.4%, to 6,321 transactions, and the average capital loaned by 9.2%, to 102,772 euros.

Thus, the percentage of homes purchased with mortgage financing in September was only 30.5%, with the average percentage of the property value financed at 74.9%, the lowest since 2007, indicating that most of the purchases were carried out by those with sufficient solvency to pay in cash.

The notaries stated that “the sector still does not seem to have hit bottom”, however they warned that they are beginning to detect more volatility in the series due to the small number of transactions per month.

In the breakdown of the pricing statistics, the price per square metre of apartments for sale stood at 1,255 euros in September, representing a decline of 15.7% year-on-year.

In addition, the cost of new housing fell by 29.3% to 1,394 euros per square metre, while second-hand homes’ values declined by 7.5%, to 1,245 euros per square metre.

According to the statistics, the month of September closed with the purchase of 20,701 homes, representing a fall of 9.2% year-on-year.

By type, the sale of apartments experienced a decline of 13.1% (10.2% in private housing). For newly built apartments, this decrease reached 50.8%, while the second-hand segment registered a positive growth of 7.3%. Also, the sale of family homes rose by 8.4% in September.

The price per square metre of the family homes sold in September was 988 euros, registering a decline of 7.8%.

Mortgages continue to fall

The notaries reported that the number of mortgages granted in September (15,552) was the second lowest in the series, after the data registered in August.

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