The cheaper credit, thanks to interest rate reductions by the European Central Bank (ECB), keeps real estate activity at full capacity, despite the rise in housing prices. Two statistics published this Wednesday show how the mortgage firm increased significantly last October. It did so at a rate even higher than that of sales, when three cuts in the price of money by the entity had already been made effective – which have left the reference rates at 3.25% -.
On the one hand, the Notarial Statistical Information Center reveals that sales rose 18.1% year-on-year in Spain, reaching 63,667 units. They increased in fifteen of the seventeen autonomous communities despite the fact that, at the same time, the average price per square meter stood at 1,693 euros, which implies an increase of 2.9% compared to the same month a year ago. Faced with this 18.1% increase in transactions, The granting of loans to purchase a home increased by 24.4%.
At the same time, the data managed by the College of Registrars of Spain indicate that in that same month, October, the sales of real estate registered in the registries they shot up 47.7% compared to the same month of the previous year. More than 130,000 operations were registered in total. Credits also experienced notable growth, surpassing the pace of sales. In October, around 52,000 home mortgages were signed, with an increase of 62.9% year-on-year.
In absolute terms, Andalusia, Valencia, Catalonia and Madrid exceeded 10,000 total home sales. Regarding mortgage loans, only in the Canary Islands (4.1%) there is an increase of less than 20% year-on-year. Highlights the case of Ceuta (155%), Asturias (134.4%) and Aragón (116.4%), which registered more than double the number of home mortgages than the previous year.
The difference between the data offered by notaries and those published by registrars is that the statistics of the General Council of Notaries reflect the price or operations at the time the deed was signed of sale, while those of the Registrars depend on when the document was registered in the corresponding Property Registry – they are the ones that serve as a source for the statistics published by the INE. The former tend to offer a more accurate idea of the evolution of the real estate market month by month.
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