The fear of new confinements has been causing many citizens to flee from city centers to the outskirts for months. Outlying neighborhoods and towns outside the metropolitan belt have gained appeal in recent months and, within them, single-family homes occupy a prominent place. The demand for and the sale of this type of property is such that it is slowing down the drop in prices observed throughout the market.
Professionals in the sector have been warning this for a long time and the statistics of the General Council of Notaries confirm it now with data. According to September figures, the sale of homes of this type grew 24.9% year-on-year, compared to the 5.4% registered by the sale of homes in total (45,583 transactions).
Single-family properties are characterized by having wider spaces inside and open to the outside, such as gardens and terraces. In addition, they are usually located in areas far from large agglomerations and all of this is precisely in line with the demand unleashed by the pandemic. The rise of teleworking and mobility restrictions have caused a boom in the search for this type of housing and that, in turn, has been transferred to prices.
The fall in the price of single-family homes slowed to 3.4%, compared to the 5.6% decrease registered by traditional flats and the -7% of the entire sector (1,357 euros / square meter). “Prices are not going to fall much more because the demand for this type of construction is being brutal and there is not enough stock to cover it,” sources from the real estate sector tell THE WORLD.
New build vs. second hand
The data from the General Council of Notaries also includes the preferences of new construction over second hand. The sale of apartments showed a year-on-year decrease of 0.5%, while that of free-priced apartments fell 0.2%. This drop in the transactions of free flats was exclusively due to the decrease in the sale of second-hand free flats (-3.5% year-on-year) since the sale of new flats increased to 30.2% year-on-year.
The price per square meter of free price flats fell by 5.8%. Within these, the price of second-hand apartments stood at 1,475 euros (-9.4% year-on-year) and that of new apartments at 2,250 euros (+ 3.7% year-on-year).
For its part, the average price of homes fell 7% in the ninth month of the year and mortgage loans for the purchase of a home increased 8.3%, according to data from the General Council of Notaries.
Mortgages go up
The mortgage market also showed signs in September of recovering to be recovering the rhythm after the stoppage due to the coronavirus. The number of new mortgage loans made in September was 29,605, which represents an increase of 5.5% year-on-year. The average amount of these loans was 152,515 euros, thus reflecting a fall of 13% year-on-year.
For their part, mortgage loans for the purchase of a property increased by 7.4% year-on-year in September (24,436 loans). This was due, on the one hand, to the increase in loans for the purchase of a home (+ 8.3%) and, on the other hand, the decrease in those destined for the acquisition of other properties (-5.6%).
The average amount of loans for the acquisition it reached 137,014 euros (-8.6% year-on-year). In the case of homes, the average capital was 135,887 euros, assuming a decrease of 3.1% year-on-year, and for the rest of properties the average loan reached 155,312 euros (-46.5% year-on-year).
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