Finally and increase month on month of property prices in Spain

Data released this month by TINSA one of the most highly used valuation companies by the Banks in Spain for valuation purposes suggest the tide is trurning on price per square meter.

Property price increases from April 2014

Whilst prices in the month of May taken from a selection of formal valuations undertaken continued to show a decline for the year the May average price pre meter increased from April in all areas excpet the Islands.

The largest month on month increase was in the Coastal regions which fits with the upturn on mortgage applications in these areas from International buyers.

The Cities of Barcelona and Madrid and Valencia also saw a month on month increase suggesting in the traditional holiday resorts and areas of commerce activity the bottom of the market is very close.

A wind of change or just a blip

Since the beginning of the second quarter activity levels in terms of buyers and mortgages has increased noticeably. Valuations for mortgage purposes seem to be indicating that property can now being bought at below the level the valuation companies believe could be achieved. All these matters are helping activity and will finally follow through to an overall recovery.

Price increases are likley to be slow but steady in certain areas of Spain and a more fluid mortgage market is still required to push matters along. We are however appearing to now be at the bottom of the curve and moving in the right direction.

Read the full article : Monthly house price report for Spain

Mortgage news in Spain for April 2014

With Spanish Banks activley promoting mortgage lending in 2014 this desire to lend is yet to filter through to completed loans.

April mortgage figures

The April figures published today will make unhappy reading for the Banks in Spain, who continue the trend of large outflow of loans with more mortgages being redeemed than constitued in the Month.

Unlike last year when there was an increase in completions between the March and the April 2014 has a drop of 7.8% in number of loans granted between the two months and the accumulated yearly figures are now down by over 20%.

Are any areas showing a year on year increase

Of the regions in Spain outside those with very small numbers like Mellia only the Canary Islands is showing a year on year increase in numbers of Spanish loans completed. Month on month Balearcis and Cataluna were up in April.

Andalucia completed on the highets number of loans but remains down both month on month and year on year.

Average interest rates

Average interest rates dropped in the month reflecting a continuing pressure on margins as Banks vie with each other to grab what activity is in the market. New product has been launched in the last few weeks to capture business.

Prognosis for 2014

Enquiry levels are increasing and all the data coming out of Spain suggests property sales are increasing so through the year when this filters through to the data the numbers should improve.

Read the full article: April mortgage completions in Spain

Fixed rate mortgage offerings for Spain

This week saw the launch of some very favourable fixed rate loans in Spain.

Historically fixed rates in Spain have been offered at well above the variable rate and have not been an attractive alternative for those buying in Spain.

In complete reverse to this normal state of affairs one bank in Spain has launched a range of fixed rates that are actually below their normal first year premium rate and are only slightly above the current variable which relies heavily on the 12 month Euribor staying at is current low levels.

Given margins above Euribor being charged by Banks in Spain are now on average 3.25% to 3.5% a good long term fix to hedge against future Euribor increases, which ultimatley will happen over a period of time, looks to be sound judgement which will pay off in the long term.

What are the problems associated with fixed rates in Spain

Whilst applying for a fixed rate mortgage in Spain, from a financial stability basis is looking to be a viable option the process of application remains fraught with difficuties.

Applications for fixed rate loans in Spain have levels of uncertainty applied to them which include what rate you will finally be offered, what your redemption penalty would be if you redeem early, and the timescale it takes to resubmit an application if finally the rate being offered is not what you were expecting.

What are the best rates available

You can currently apply for
15 years @ 4.2%
20 years @ 4.45%
25 years @ 4.60%
30 years @ 4.65%

Read the full article : New fixed rate mortgage offerings in Spain

Property price news in Spain

Data issued today by the INE in Spain showed further signs that a property price recovery is on its way.

Spanish property prices past and present

Since 2007 property prices have dropped in Spain on average by 40% and in some regions by even more.

The property collapse in Spain fuelled by an oversupply of property stock, general Spanish, European and worldwide economic pressures and a lack of credit in the sytem has deterred buyers for a number of years. With Spanish Banks announcing lending targets this year and a relaxation of finance in Spain along with an improving economic environment has encouraged buyers of holiday homes and investment to start to look at Spain again.

Property price data

Four regions showed for the first time in a number of years a postive annual growth in quarter 1 of 2014 and all areas showed for the first time a decrease in the level of price reductions.

In general new houses performed better than resales but this was partly skewed by a change in the weightings used by the INE with a larger percentage of overral sales being shifted toward resales in comparision to the base year of 2007.

Spanish mortgage availibilty helps spur growth

With an increase in mortgage applications being published last month and two quarters of growth all be it small on GDP the assumption that house prices would stabilise in Spain during 2014 and show some grwoth during 2015 now seems to be a reality.

Read the full article : Quarter 1 offcial data for Spanish property prices