Archive for August, 2009

 

August 31st, 2009

The number of new mortgages signed in June rose by 7.2% compared to May, suggesting that the mortgage market may be starting to recover from the credit crunch. Optimists argue this will breathe life back into the property market.

On a year on year basis, however, new mortgages signed in June were still 10.8% below the same month last year, showing that the market still has some way to go before it recovers to former levels.

These figures, from Spain’s National Institute of Statistics, also reveal that accumulated new mortgage signings were down 31% in the first 6 months of the year compared to the same period last year.

By value, new mortgages in June fell 6% year on year, but rose 4% month on month.

The average value fell 10% year on year to 142,700 Euros, but was up 5% on the previous month. In some regions, especially those where property prices are highest, the fall was more drastic. Average mortgage values fell 19% in Madrid, and 25% in Barcelona.

Average mortgage values are also down heavily in popular holiday home destinations like Malaga (Costa del Sol), down 24.5%, and The Balearics, down 30%.

The average interest rate was 4.47%, 13.8% lower than a year ago and 2.9% lower than the previous month. This figure shows that banks are passing on only a fraction of the fall in base rates to customers. Base rates are down 70% compared to June last year.

The average monthly mortgage payment has fallen from 845 Euros in June 2008, to 702 Euros today.

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August 17th, 2009

The Spanish house price index figures for July 2009 have just been released. See the graph and the table below for an up to date overview of the real estate market trend in Spain.

Spanish House Price Index July 2009 (C) Montes de Malaga Real Estate

Spain Coastal Inland
07-2008

08-2008

09-2008

10-2008

11-2008

12-2008

01-2009

02-2009

03-2009

04-2009

05-2009

06-2009

07-2009

-3.9

-4.6

-4.9

-6.5

-7.8

-8.8

-10.1

-9.0

-9.7

-10.1

-9.8

-10.1

-9.2

-6.2

-8.3

-5.3

-8.9

-8.5

-14.3

-12.6

-10.7

-11.5

-13.5

-12.8

-12.3

-10.9

-3.1

-1.0

-1.7

-5.3

-6.3

-6.6

-10.0

-7.9

-8.9

-8.9

-8.7

-9.8

-8.3

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