Performance of housing and loans in Spain

House sales in Spain continue to rise but slowly.

Whilst the level of mortgages both in terms of number of loans and capital lent are growing at a fast pace when compared to 2014 the actual sales of homes has stagnated a little.

Resales continue to be buoyant with Villas and Town Houses being the favourite choice. New builds and apartment sales are however weak pulling down overall figures.

Mortgages for the purpose of construction whilst above previous years levels showed signs of weakening in October a reflection of perhaps the concerns of sale levels for new builds.

Mortgages in Spain

Against Septembers very good figures October loan levels fell back slightly. Year on year both against the same month in 2014 and accumulated across the year mortgages in Spain have however risen. The Balearics leads the way up over 60% on last year. This is also reflected in the increase of purchasers looking to own a home in Spain.

Fixed rate best buys continued to strengthen the split between fixed rates and variable rates but variable rate contracts continue to make up over 90% of all new loans constituted.  

Average interest rates fell again in October due to the continuing drop in the 12 month Euribor. Margins above Euribor being offered by the Banks seems to have stabilized at with no sign of a price war being on the horizon for 2016. 

Banks in Spain

Whilst the Banks in Spain have pressures for next year on interest margins and overall profitability the challenge from the Governor of the Bank of Spain is for the banks to improve their cost bases, close Branches, undertake further amalgamation, and improve internet services and activities to bring them in line with other European countries.

Read the full article:- Spanish mortgages continue to recover but house sales growth is slow