House sales plummet by 11% in Spain while FAR fewer mortgages are granted, new figures show

HOME sales in Spain fell by 11.2% last year compared to 2022, according to figures released on Thursday by the General Council of Notaries(CGN).

New mortgage loans dropped even further, by 21.3%, while prices recorded an average annual rise of 1.5%.

Property deals reached 640,451 transactions last year but despite the reduction, its still the fourth-highest figure after 2007, 2021 and 2022, despite higher interest rates and the general economic situation.

There were also significant variations during 2023 over purchases, with a year-on-year decline of 15.6% between the first and third quarters of the year.

The fourth quarter saw a more moderate year-on-year drop of 4.8%, which buffered the annual decline.

New mortgages fell by 21.3% in 2023, to 280,340 transactions and the average amount dropped by 3.1% to €148,592.

Francisco Iñareta, from online property portal idealista said: “The figures confirm what the market was already discounting: the number of mortgages fell sharply, while the number of closed transactions fell more moderately and prices continued to grow.”

“There is no doubt that a double-digit drop in sales is significant, but we must not neglect the comparison to a year as dynamic as 2022,” he added.

By type of housing, sales of flats decreased by 10.5% year-on-year, reaching 492,498 units, while single-family homes fell more sharply, with a fall of 13.6% year-on-year, reaching 147,953 units.

Apartment prices rose by 2% compared to 2022, reaching €1,830 per square metre, while the price of single-family homes averaged €1,287 per square metre, reflecting a decline of 1.3%.

Just one of Spain’s 17 regions- Asturias- recorded a rise in home sales, with a 1.4% increase.

The most significant decreases were recorded in the Balearic Islands (19.9%); Canary Islands (16.8%); Madrid (16.2%); the Basque Country (15.7%); La Rioja (14.5%); Catalunya (12.8%) and Andalucia (12.4%).

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