Home buying is slowing: fewer sales, fewer mortgages and more cash payments

In just one year, The Spanish real estate market has begun to digest the new situation the economy is going through, under the influence of the historical rise in interest rates, which they are close to 4% compared to 0% twelve months ago. Spaniards are buying fewer homes than a year ago, they are looking for much fewer mortgages to finance them and, above all, more and more operations are being carried out without the need for financing, or tocates.

This is indicated by the latest statistical data of the Chief Notary Council, which reveal that until April, the number of apartment sales fell by almost 21% year-on-year, to below 50,000 transactions, while the average price per square meter remained at the same level. to 1,622 euros, almost 1% more than in April 2022. In In Galicia, the purchase and sale of homes fell by 10.2%, while the approval of mortgages fell by 28.5%.

Although house prices have continued to rise over the past twelve months, they are decreasing. In other words, real estate became less and less expensive month by month, and in April they even fell by 0.2 percent compared to the same period in 2022, reaching 1,787 euros per square meter, while the prices of family houses remained at an average level. from 1,308 euros per square meter, with a growth of 1.5%. On the other hand, mortgage loans for the purchase of apartments fell by almost 32% year-on-year last April, to 21,884 operations. The The average amount of these loans decreased by 6.4% on an annual basis and amounts to EUR 142,306.

no credit

He the percentage of apartment purchases financed with a mortgage loan in April was 44.1%. That is, more than 55% is paid without credit, one of the highest statistics in the historical series, something that is explained by the purchasing power that customers have accumulated through inheritances, foreign investors or savings. In addition, with this type of purchase with financing, the loan amount represented an average of 70.6% of the price. In the economic bubble, on average, more than 90% of the estimated value was financed.