Increased lending activity helps house sales

INE and the Notaries reports

Data published by the INE in Spain and the Notaries continues to support the veiw that a slow but sustained recovery of the housing market is taking place in Spain.

House sales July

Julys house sales figures from the INE taken from land registry shows that sales were up 13.9% against July of last year.

Julys figures when compared to Junes were also up 7% so up month on month and year on year.

Private sales lead the way

The recovery is being pushed ahead by resales with new build figures remaining in the doldrums. New build sales continue to be down on the previous years and losing momentum month on month. This is partly due to pricing and the more positive manner in whuch private sellers are willing to negotiate.

June loan signings

The Notaries who are reporting against June but with figures taken from signing rather than land resgitry show that house sales were up 19.4%.

Mortgage lending was up 18.85 with 16,002 new loans signed in June and average loan amount up 4.8% at €121. 445.

Prices however dropped in June by 0.3% bringing the total decline in house prices sonce 2007 to 33.6% as an average across Spain. With Spanish Banks alowing an increase in loan amounts the suggestion is therefore that the average loan to value is increasing.

Read the full article:- Sale of homes and lending data Spain
 

Positive June lending for spain

Postive lending figures for June in Spain

Despite very positive figures in June for Spanish home loans this good news was tempered by the fact that the gap between new loans being constituted and loans being cancelled remains a porblem for the Spanish Banks.

Whilst 21,454 new home loans were up on the books in June and registered at land registry over 27,000 mortgages were redemmed or cancelled. After the boom of the first half of the decade and a lending market that was over exposed Spanish Banks looked to reduce their overall lending book.

This strategy was enhanced by increasing of margins and tightening of criteria and that along with the economic woes of Spain ensured that the mortgage loan book of all lenders decreased. considerably.

Spanish Banks want to increase lending

In the last few years the Banks have looked to stem this tide and have come back to the market with better mortgage rates and more pragmatic risk assessment. Despite all of this they seem unable to reverse the trend. A reducing mortgage book eventaully has a knock on affcet on the percenatge of bad loans against the entire lending book and will in the long term affect earnings.

Highlights for June data

For June numbers of new loans were up 8.7% on May, the first time in 5 years that June has outperformed the previous month. Capital lent increased by 31.1% against May, again for the first time in many years.

For the month of June loan numbers increased by 26.3% over June of last year and is up 21.1% anually accumalted for 2015.

Interest rates remain stable and floating rates the number one choice for borrowers.

Regional performance

Andalucia saw the most new loans in the month and was of those areas normally appealing to overseas buyers wishing to own in Spain the best performer in the Month.

Read the full article :- Despite increases in new Spanish mortgages net outflows remain in Spain