August house sales and lending

Notary reports

Each month the Notary offcies in Spain issue a report about the number of house sales and lending taken in Spain.This report is published around the 18th of each month and is published one month in arrears.The data reflects actual house sales signed and actual mortgages in Spain contracted within that Month.

INE reports

At the end of each month and two months in arrears the National office of Statistics in Spain publishes data for mortgage lending as extracted from Land Registry. This data relates to mortgages signed previously that have now bee registered on the deeds and may reflect signings from up to three months before. The information is more detailed but more historic than that provided by the Notary offices.

What do the reports tell us for 2015

Whilst both sets of reporting report at slighty different times and on a different basis both are showing that there is now an improvement year on year for both house sales and Spanish Mortgages.

House sales are up year on year although prices are still under pressure and dropping, all be it at a slower rate.

Mortgage completions are up year on year although in August the number of completions and capital lent dropped from July by 11.9%. This trend of lower completions July to August is normal but given the market has a lot of catching up to do one might have exoected to see normal trends reversed.

 

Lending volumes

All Spanish Banks are back in the lending game and competition is putting pressure on net earnings and yields, which is in turn being reflected in the share price of the Banks. Many challenges remain for Spanish banks who have to balance volume against profit and reductions in non performing loans, which is quickest resolved by increasing your book of performing loans.

Whilst the gap narrowed in August for yet another month more loans canceled than new loans added leaving another month of net outflows.

Read the full article:- Spanish housing and mortgage market recovery