Walter Finch
SALES in Spain’s housing market jumped by an impressive 19.4% in July to reach levels not seen since the property boom that preceded the Great Recession.
A total of 57,302 transactions were recorded, marking the highest figure for any July since 2007, when over 63,000 homes changed hands.
The data, from Spain’s National Institute of Statistics (INE), indicates a return to positive growth after declines of 6.1% in May and 21.5% in June.
Both new-build and resale properties have contributed to the surge, with new home sales experiencing particularly robust growth.
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Sales of newly built homes jumped 38.6% year-on-year, with 11,302 transactions, while second-hand home sales increased by 15.5%, reaching 46,000.
In July, the vast majority of homes sold were free-market properties, accounting for 92.1% of the total, with 52,761 transactions.
Meanwhile, sales of subsidised housing made up 7.9%, totalling 4,541 transactions, a notable 29.4% rise compared to last year.
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Interestingly, more than half of property purchases in Spain were made in cash, reflecting the ongoing trend of liquid buyers avoiding mortgages.
Month-on-month, home sales in July rose by 14.4% compared to June, although overall sales for the first seven months of 2024 have fallen slightly by 1.3%.
This drop includes a 7.7% increase in new home sales but a 3.4% decrease in second-hand property sales.
The combination of low-interest rates, increased consumer confidence, and a shortage of available housing in certain areas has fueled the demand for properties.
While the overall market for the first seven months of 2024 still shows a slight decline, the July figures offer a promising outlook for the remainder of the year.
The housing sector is clearly on a positive trajectory, driven by a combination of economic factors and increased demand from buyers.
However, experts caution that the market is not without its challenges. Rising interest rates and potential economic uncertainties could impact future trends.
Nonetheless, the recent surge in house sales is a significant indicator of the growing strength of the Spanish housing market.
