Growth continues in Spain
Growth in terms of both house sales and mortgages in Spain moved forward in April but in some areas growth slowed.
Overall new build sales continued to lag behind that of resales and the level of increase in house sales which had grown since June 2015 to November 2015 fell back in the first quarter of 2016.
The stalling of the market may have been due to uncertainty surrounding the countries leadership after the first general election in November and may be buoyed going forward by the second election which has just taken place.
Spanish Banks
Spanish Banks are certainly keen to lend so financing is not the issue. One interesting outcome of the data issued in June was that the percentage of house sales bought by way of a mortgage in Spain only reached 45% in April. This compares to levels topping 70% in a normal month.
Lenders in Spain will hope this is a one off and despite this drop in those using finance to buy for the month loans in Spain increased.
Mortgage lending was up both in terms of capital lent and numbers of new loans. The increase over march levels was lower than perhaps is normal but year on year and annually accumulated the market remains on upward trend.
Interest rates
Fixed rate product types continue to form a larger percentage of the total market rising to 14% of all home loans taken as they are deemed to be the best buys. The average interest rates is settling around 3.20% for the year so far.
The Euribor itself rose slightly in May but dropped back again for June but the stability in rate will be partly down to a preference for both mortgagees and Banks to consider a fixed rate contract.
Canary Islands
Regionally the only area which appears to be struggling across the year to date is The Canary Islands. A natural haven for expat buyers this may have been affected by external matters outside of what is happening in Spain.
Read the full article :- Property and loan market in Spain
