The price of housing continues to rise, as the second term of this year shows, with a year-on-year increase of 3,3%. This has meant the highest increase since 2019 (when the coronavirus had still not triggered the crisis), and what is most important: it certifies an ascending period, regarding prices, after having come to a halt due to the coronavirus. There are a total number of 29 quarters of the year when year-on-year rises, regarding our property prices, have taken place. It seems clear that housing in Spain is reactivated and it is starting to recover. Last month of June, housing deals increased more than 40%, a fact which proves the good economic health of our real estate system. Spanish people continue to invest in housing, as they consider it to be a solid and profitable asset in the long term. The price increase that has taken place the second term of this year confirms that the stage of moderation, which started in the first term of 2020, when the health crisis began, is being left behind.

LEAVING BEHIND THE CORONAVIRUS CRISIS

If we look at the facts and figures shown by the Instituto Nacional de Estadística (INE) comparing the second term with those of the first term, then there has been an increase of 2.4 points. As we have already said, what draws our attention the most is the interannual data as we would have to go back two years in order to see such an increase. This is of special relevance if we take into account the difficult times we are living through. Therefore, the very fact of being able to make a comparison with times previous to the coronavirus says a lot about the solidity of our real estate system and thus, giving rise to optimism and thoughts of having left behind the effects of the crisis. But let us look at the facts and figures; during the first term of 2020, just before the irruption of the health crisis, the interannual housing price increased 3,2%. This means that the increase was slightly lower than the one of the second term of 2021. From the first term of 2020 onward, the next ones declined on account of the pandemic (during the first term of 2021, the year-on-year growth was 0,9%, the lowest figure in seven years). Currently, things have changed; second-hand homes are sold at a good pace (during the second term of this year, the year-on-year price rose 2,9% which is an increase of 2,7% with regard to the first term). New home sales have started to make great strides as is shown by the year-on-year 6% price increase, during the second term, meaning a rise of 1,3% with regard to the first term of this year. The INE published other interesting data: last month of July, the number of home mortgages which were registered in the property registry increased at an annual rate of 36,8% (in all, 35.329 properties were registered). The average value of these mortgages rose 3,8%, being 136.527 euros. In addition, the number of land mortgages increased 24,7% yearly and 10% over the year as a whole. This reveals the dynamism of our real estate market.

AS REGARDS AUTONOMOUS COMMUNITIES

It is noteworthy that during this second term of 2021, every single autonomous community has experienced positive interannual rates as well as having improved their data in relation to the first term of this year. This means that, in varying degrees, the price of Spanish housing has increased throughout the country. As regards the autonomous communities, the growth is championed by the Canary Islands and the Balearics with a rise of 4,8 points in annual rate and they are followed by Cantabria with a 3,3 point increase with regard to the first term. If we take a look at year-on-year prices, then the highest increase took place in Melilla and the Canary Islands being 6,7% and 6,4% respectively. Contrary to what one might think, in the Community of Madrid prices rose less than in others, regarding the interannual rate, with an increase of hardly 1,9%. As for home mortgages, Madrid stands out above the rest of the communities as it contracted the highest number of mortgages of all (a total of 6.825), it is followed by Andalusia (6.454) and Catalonia (5.837).

Picture 01: xb100

Picture 02: freepik