Mixed messages about the recovery in the Spanish property market continue but some of the ups and downs could be down to a court ruling on a controversial mortgage ground clause.
The latest data from the National Statistics Institute show that the increase in property sales slowed to 1.1% in July compared to the same month in 2015 and down from the 19.4% recorded in June, a fall of 10.2%.
However, the slowdown may be due to the Supreme Court’s ruling in June in connection with the registration of some mortgages being deferred awaiting correction as the July figure probably would have been higher without the case.
And it should not deter from the fact that the NSI figures have now shown six months in a row of year on year sales rising.
A breakdown of the figures show sales of second hand homes increased by 2.9% year on year in July but new home sales fell by 6.5% and the biggest rise was in Asturias and Extremadura, both with increases of 21.4%.
The next highest number of sales were recorded in the Balearic Islands with growth of 14.7%. In contrast, the biggest fall was in La Rioja with sales down by 23.1%, followed by Navarra down 14.2% and the Basque Country down 13.8%.
But figures from the General Council of Notaires show that sales fell by 7.9% in July year on year but a more moderate fall of 1.4% when seasonally adjusted. Sales of apartment fell by 10% while single family home sales increased by 0.7%.
But the Council says that generally the market is recovering even although it also reports that prices have fallen. The average price of property sold in July was €1,274 per square meter, a decrease of 3.6% compared to the same time last year.
The Notaires report says that one thing holding the market back is over supply and there are not enough buyers for the types of property coming on the market. But it adds that there are considerable regional differences with the strongest demand in cities and on the coast.
