construction workers

The sale of housing rises 18.8% in the best June since 2007 but the sector fears a break in the fall

Updated

Compared to May, transactions fell by 3.4% due to the impact of the rate hike and inflation

Construction workers working on a residential building in Bilbao.louis fabricEFE

The real-estate market maintained the level of euphoria in the month of June, in which there were 58,010 home purchases in Spaina 18.8% ms than in the same month of the previous year, which represents the largest interannual increase for a month of June since the year 2007according to data published this Friday by the National Statistics Institute (INE).

In intermonthly terms, the number of sales fell by 3.4% regarding the record of Maywhen they occurred 60,100 transactions in the country, but it far exceeds the drop that occurred in April -to 47,400 purchases- and the growth trend that had been registered in the first quarter of the year is recovered. Except for April, this is the fifth month in which the barrier of 50,000 operations has been exceeded.

Of the 58,010 transactions carried out in the sixth month of the year, 48,188 were second-hand housinga type of purchase that raises a 21.5% compared to the same month of 2021. The increase that occurs in the new home sale is more moderate, 7.1%until 9,822 operations. 92.6% of the homes transferred by sale in the sixth month of the year were free housing and 7.4%, protected.

The autonomous communities that presented the greatest annual increases in the number of home sales in June were Canary Islands, with an increase of 42.5%; the Principality of Asturias, which experienced a rise of 38.3%; Y Cantabria, with 37.3% of operations ms. By contrast, the Madrid’s community was the only region that experienced a negative variation rate, with a 6.3% less of purchase and sale operations with respect to the same period of 2021.

In absolute terms, the communities with the highest number of transmissions per 100,000 inhabitants in June were the Valencian Community (222), Andalusian (185) and the Region of Murcia (184).

The data published today have been well received within the sector, although they are more pessimists compared to the evolution in the third trimester.

Sales are breaking records month after month when presenting figures that have not been seen since 2007. At the monthly level, a decrease of -3.4% is registered, a setback that was already expected due to the announcement of the rate hike and the arrival of the summer season, which also causes the rate of sales to drop. After 16 consecutive months of strong increases in the number of sales, the real estate sector can confirm that it continues to drive and respond to the great interest in buying a home that began last year. Home sales continue to be very strong and leading the restoration of the sector,” said Maria MatosDirector of Studies at photohouseknowing the data.

The expert recalls that in the first six months of 2021 they closed 268,000 sales and in 2022 we have more than 330,000 transactions closed, which represents 23.1% more transactions closed than last year. This evolution could lead to hope that 2022 will close with better data than the last year, which was the best for the real estate sector in 13 years after closing with 565,000 sales.

However, the European Central Bank interest rate hike and the consequent tightening of financing conditions by the banks, together with the problem of inflation -which reduces purchasing power and impoverishes families- and fears of a recession economic, they could deflate transaction volume.

These factors are going to mean “that the second half of the year does not present such a high level of activity and surely we will stop seeing historical figures, as we have been seeing during the first six months of the year. In addition, it must also be taken into account that the runaway inflation that we are experiencing little by little is going to begin to make a dent in the pockets of Spanish households and the ability to save is going to be reduced by the large increases not only in energy and fuel, but also in the shopping basket”, lamented the expert from Fotocasa.

Francisco Iareta, idealista spokespersonexplains that “the volume of closed operations remains very high and marks levels not seen for a decade in response to the strength that demand has shown due to historically low mortgages, the desire to change housing and the record savings of Still, as these factors fade, with more expensive financing, high inflation, and rumors of an impending economic recession, deal growth slows and probably in the coming months we will see a stabilization of the dataor maybe to some each of the same”.

Source: www.elmundo.es

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