The residential market is showing signs of slowing down, according to the latest data published by the National Statistics Institute (INE). In October, housing sales and purchases experienced a decrease of 11.1% compared to the same month last year, reaching 45,903 transactions, the lowest figure for an October since 2019. This decline occurs against a backdrop of higher interest rates.
This year-on-year decline, which softens the 23.7% drop observed in September, marks the ninth consecutive month of negative year-on-year rates in housing sales and purchases.
The decline in house sales and purchases in October is mainly attributed to a decrease in second-hand flats, while the sale of new homes showed a slight increase. Used homes recorded a fall of 13.5% in October, with 37,056 transactions, while transactions of new flats increased by 0.8% to 8,847 transactions.
In October, 92.8% of the dwellings transferred by sale and purchase were free dwellings, with a year-on-year decrease of 10.4%, while protected dwellings, which accounted for 7.2% of the transactions, fell by 19%. Comparing October with September, there was an increase of 4.1% in the sale and purchase of homes, the highest rise for an October month since 2019.
According to the INE, 69.2% of home sales and purchases in October were between individuals, totalling 31,784 transactions, 11.7% less than in October 2022.
In the first ten months of 2023, home sales and purchases decreased by 8.7%, with transactions on new homes falling by 3.6% and those on used homes by 9.9%.
92.8% of the dwellings transferred by sale and purchase in October were free dwellings
The number of properties transferred in the land registries in October was 167,771, 0.8% less than in the same month of the previous year. The number of property sales and purchases fell by 6.4%, while those transferred by donation increased by 0.3%, those by inheritance by 7.3% and those by exchange by 15.3%.
Urban properties accounted for 86.7% of sales in October and rural properties for 13.3%. Urban property sales fell by 7.3% year-on-year, while rustic property sales increased by 0.5%.
In October, the Autonomous Communities with the highest number of property sales per 100,000 inhabitants were Comunidad Valenciana (172), Murcia (150) and Andalucía (130). Andalusia led in absolute terms with 8,894 transactions, followed by Comunidad Valenciana, Catalonia and Madrid. Eleven communities experienced decreases in the sale and purchase of homes compared to October 2022, with the most significant decreases in the Balearic Islands, Cantabria, the Canary Islands and Andalusia. On the other hand, six communities increased their sales and purchases, with Navarra, Extremadura, Asturias, Castilla-La Mancha, Murcia and Galicia standing out.