Housing sales continue to rise in 2014

HOME sales in Spain have posted a third consecutive quarter of rises as 13.5 per cent more homes were sold in quarter three than the same period in 2013.

According to the Ministry of Development the number of sales completed before a notary between July and September was 80,136. Between January and March there was a 48.5 per cent rise in sales, with a further 12 per cent rise in the second quarter.

These are encouraging figures, particularly when taken with latest data from the Institute of National Statistics (INE) which showed a 16 per cent gain in October compared with the same month in 2013.

But there is still a long way to go before pre-housing crash figures are reached. The quarterly record stands at 251,649 homes sold, set in quarter two of 2006.

While 95 per cent of transactions were for private housing, the lion’s share was in the resale market, with just 15.1 per cent of sales being of new homes. While signs are good for a recovery of the new homes market, the vast stock of unsold new builds will have to reduce further. But it is slightly surprising that new homes sales are not rising faster as a recent report stated that new houses are being sold for less than they cost to construct, giving home buyers a unique opportunity that may not be seen again for decades.

Topping the sales list in quarter three was Andalucia (16,360 transactions); followed by Valencia (12,116); then Catalonia (11,983) and Madrid (10,272).

Boosting the figures were foreign residents of Spain. In quarter three purchases by them accounted for 12,764 transactions, an increase of 17.2 per cent, the 13th quarterly rise.

The total number of sales to foreigners including non-residents reached 13,789, or 17.2 per cent         of all home purchases in the      quarter.

Most popular spots were Alicante (3,323) Malaga (1,918), Barcelona (1,103), Madrid (839) and Tenerife (721).