2023-08-31 09:46:53
The signing of mortgages on homes in the Girona counties in the first half of the year fell by 12.48% compared to the same period last year, according to data from the Mortgage Statistics of the National Institute of Statistics (INE). The demarcation registered up to 3,849 mortgages in the first semester. A figure which, despite being below the level reached in 2022, is the second highest in the last decade in the province. Without taking into account the figure registered a year ago, you have to go back to 2011 to find a first semester with a greater number of mortgages in the Girona counties.
They also fall in June
The province also saw mortgage originations decline in June. Girona closed the sixth month of the year with 598 mortgages, 19.2% less than a year ago. This is the second lowest figure of 2023, behind the month of April (426 signatures). The demarcation was lent up to 89.9 million euros in June. In this way, the average amount per loan was 150,334 euros.
This situation is also understood in Catalonia. The signing of mortgages on homes fell by 23.2% during June in Catalonia compared to the same period last year, up to 5,336 signatures. In the State as a whole, mortgages on homes fell by 21.9% year-on-year, up to 33,478 firms. In a context of rising interest rates, the INE notes that the average rate of new loans climbed to 3.19%, the highest level since April 2017, i.e. of the last six years
The average term of mortgages on homes was 25 years. 40% of the loans were at variable rates and 60% at fixed rates.
In terms of borrowed capital, in Catalonia it stood at 858.4 million euros, 24.2% less than the same month a year ago and 7% less than in May. In this way, the average amount per loan was 160,865 euros. This is a figure higher than the national average, which was 143,796 euros. In the State as a whole, the loaned capital stood at 4,814 million, a figure that represents an interannual decrease of 22.5%.
In relation to the State as a whole, during June Catalonia was the third community where more housing mortgages were signed, only behind Andalusia (7,043 signatures) and Madrid (5,675 signatures). In the same vein, Catalonia also ranked third in terms of borrowed capital, behind Madrid (1,218.2 million euros) and Andalusia (883.4 million euros).
The INE figures also highlight that in relation to June last year, the only community that improved the number of mortgages signed on homes was the Canary Islands (+5.4%).
Home prices rise by 3%
According to data published this week by the College of Registrars, housing in the Girona regions closed the second quarter being 3.2% more expensive than a year ago. From April to the end of June, flats rose by 0.3% compared to the first three months of the year.
The Girona real estate market closed the second quarter with an 8.2% increase in the number of home sales. However, if compared with the first months of the year, operations slowed down in the demarcation, specifically decreased by 5.9%, according to the College of Registrars.
Foreigners take out mortgages in Spain to record highs
Foreigners took out, for the first time in the historical series, more than 30,000 mortgages in Spain in 2022, specifically 30,503, according to the yearbook of the College of Registrars. This figure is 33% higher than that of 2021 and is 30% higher than that of 2019, the last financial year used as a comparison to be the one before the outbreak of the pandemic. At the same time, the number of sales carried out by foreigners in Spain has been growing little by little in recent years: in 2013, they acquired 36,700 residential properties and mortgaged just over 10,500. These figures have multiplied tenfold in the last ten years, until approaching 90,000 transactions in 2022.
The ratio of mortgaged homes to homes purchased marked the highest value in 2020, when two out of five properties purchased by foreigners were through a loan. It was the highest percentage, compared to the 30% that was mortgaged in 2013. In 2021, the percentage fell, compared to 2020, and in 2022 the bearish path has continued. The main reason for this to have happened is the increase in interest rates implemented by the European Central Bank (ECB), which has its impact on the price of loans.
Foreigners buy homes and mortgage them everywhere in Spain, although the presence on the coast predominates. “In all the autonomous communities, double-digit annual increases have been recorded, and the largest number of mortgages has been reached in Catalonia (7,533), Andalusia (5,893) and the Valencian Country (5,335)”, the document points out published by the College of Registrars.
This increase in international presence in the domestic market may not end during 2023, despite the existing slowdown. “In 2022, there was a noticeable increase in sales by foreigners, with particular intensity in transactions carried out by non-residents. In 2023, residential demand has moderated in general, but, even so, the international buyer shows more resistance than the national one, although they now lead the transactions of foreign residents”, explains Cristina Arias, director of the Service of Studies of the appraiser Tinsa.
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