Home Prices Rise by 5.2% in August, the Highest Increase in the Last Three Years

Source: OKDiario

Total property and housing transactions in July showed a slight year-on-year increase of 0.1%, reaching a total of 92,962; meanwhile, total mortgages recorded a 2.9% decline, totaling 43,702 transactions, according to preliminary data from the Real Estate Registration Statistics compiled by the College of Registrars.

Regarding the total number of transactions in July compared to the same period last year, this represents the most significant slowdown in growth in recent months, following a moderation in growth in June. The 92,847 transactions in July 2021 rose to 92,962 in July this year, a figure almost identical to that of the previous year.

This slowdown is similarly observed in housing transactions, with modest increases in the last two months compared to the same period the previous year. In July, there were 49,177 registrations, 3,000 more than in the same month last year, when 45,939 transactions were recorded.

Decrease in Mortgages

In terms of total mortgages, there were 43,702 transactions in July, compared to 44,998 in the same month the previous year. This marks the first year-on-year decline since February 2021. For housing mortgages, there was barely any growth in July, increasing from 32,585 in the same month last year to 32,941 this year.

When measuring the evolution by the rate of change in registered transactions in July compared to the same month in 2021, the clear slowdown in growth from previous months becomes evident. Total transactions increased by only 0.1% (6.8% in June), with a higher increase in housing transactions, at 7% compared to 18.3% in June. Total mortgages fell by 2.9% (8.7% increase in June), while housing mortgages increased slightly by 1.1% (11.2% in the previous month).

By Regions

Regarding the annual evolution of total transactions by autonomous communities, decreases are observed in ten regions. Among the four regions with the highest volume, Madrid (-12.9%) and Andalusia (-3%) saw declines, while the Valencian Community (11.2%) and Catalonia (4.4%) saw increases. Other notable increases include the Canary Islands (20.2%) and the Balearic Islands (15.6%), while negative changes are seen in La Rioja (-21.0%) and Castilla-La Mancha (-12.4%).

Regarding total mortgages compared to July last year, decreases were noted mainly in Madrid (-34.3%) and Extremadura (-13.7%). On the positive side, increases were more significant in the Balearic Islands (24.6%), Catalonia (19.1%), and Navarra (15.6%).