2023-10-26 05:31:47
The mortgage market is shrinking, but the sale and purchase of homes is not so much. And the fact is that the purchase of real estate without the intermediation of a banking entity that advances the cost has been progressively reduced in the last five years. Today three times more homes are purchased without a mortgage than in 2019.
The phenomenon has increased considerably in the last year. Between January and August, 1,573 properties have been acquired without the need for a loan. This establishes that 48% of the homes that have been purchased in the first eight months of the year, a total of 3,291, have been acquired by depositing the total amount. Or at least a mortgage loan is not requested to raise the total cost of the transaction. Five years ago this phenomenon occurred in 536 of the 2,493 houses that had been purchased. Then, until the eighth month of the year, 1,927 mortgage loans were granted.
This is clear when combining the statistics of the National Statistics Institute (INE) on the creation of mortgages and those on Property Transfers. The first shows that 1,718 mortgages have been granted in the province to buy a home until the month of August. In the same period of time, 3,291 properties have been purchased in the province. The result is those 1,573 homes that have been purchased at ‘tocateja’ or using other types of loans other than mortgage loans granted by banks or savings banks.
The month of August has been especially relevant, since seven out of every ten purchases of residential goods have been in cash. In August, 184 mortgage loans were granted and 477 properties were purchased. This month has been especially low in the mortgage market. You have to look at the eighth month of the pandemic year to see a lower number of mortgages granted (139). The last month analyzed by the INE recorded a year-on-year decrease in the mortgage market of 30%. In August of last year, 261 loans had been approved for the purchase of a house.
The mortgage market has had its worst year in recent years. Interest rates hold back those who need to finance the entire acquisition, always starting from borrowing 30% of the family income month by month, and those who lack a little and who accelerate the subrogation or seek that amount for another via (consumer loan, loan from a family member, etc.).
Thus, during the first eight months of the year, 1,718 home mortgages have been granted. It is 30% less than a year ago. In the first eight months of 2022, 2,437 mortgages on homes had been granted in the province. The figure is lower than that recorded in 2021 (1,945 homes purchased with a mortgage) and in 2019 when 1,927 loans had been signed. The only lower data in these five years is that of the covid-19 exercise. In 2020, 1,396 mortgages had been established until August.
Increasingly lower average mortgage
If the granting of loans falls, the amount that banks allocate to each loan has fallen even more. It has gone from 360 million lent between January and August 2022 to 177.2 million in 2023. This reduces the average mortgage by more than 44,000 euros. Thus, the average mortgage granted last year would amount to 147,886 euros per loan while the average mortgage granted this year would reach 103,143 euros on average.
#purchase #homes #mortgage #triples #years