Housing Sales Surge 41% in September, Reaching Highest Levels Since 2007
By Mas Property
on Tue Nov 26 2024
In September 2024, Spain saw a dramatic increase in housing sales, with 61,887 transactions registered nationwide—an impressive 41.5% rise compared to the same month last year. This marks the largest increase since August 2021 and the highest number of transactions in 14 years. To find a higher volume, one would have to go back to July 2007, when over 63,000 homes were sold.
According to data from Spain’s National Statistics Institute (INE), this surge in sales is largely attributed to lower interest rates, which have made housing more affordable. The increase in sales was broad-based, affecting both new and second-hand properties, and occurred across all regions of the country.
September’s strong performance marks the third consecutive month of year-on-year sales growth, following increases of 19% in July and 0.9% in August.
The rise in housing sales was fueled by both new homes, which saw a 54.9% jump to 12,531 transactions, and existing homes, which grew 38.4%, totaling 49,356 transactions.
Of the total housing sold in September, 92.4% were free-market homes, while 7.6% were protected housing. Sales of free-market homes rose 41.3% year-on-year to 57,179, while protected housing sales increased by 43.6%, reaching 4,708 transactions.
Strong Performance Across Regions
On a month-on-month basis (September compared to August), housing sales surged 25.1%. Over the first nine months of 2024, total sales increased by 3.1%, with new home sales rising 12.2% and existing home sales increasing by just 1%.
The overall sales growth in 2024 reflects a strong rebound, with the number of transactions now on track to exceed 600,000 by the end of the year. Francisco Iñareta, spokesperson for the property portal idealista, notes that the high transaction volume is likely due to a combination of lower financing costs and the expectation of rising home prices. This has prompted many buyers to accelerate their purchasing decisions.
Regional Growth
All Spanish regions saw an increase in housing transactions in September, with Extremadura (79.3%), the Basque Country (67.4%), and Asturias (57.3%) leading the way. Other regions with notable increases include Aragón (56%), La Rioja (54.6%), and Madrid (52%).
The region of Cantabria (45.7%) and Galicia (42.4%) also saw significant gains, while the Valencian Community matched the national average increase of 41.5%. On the other hand, the Balearic Islands (18.5%) and Navarra (18%) reported the smallest year-on-year increases, followed by Murcia (32.2%) and Catalonia (33.8%).
The data indicates a vibrant housing market in Spain as 2024 nears its close, with strong regional variations but an overall nationwide surge in activity.
Source: Idealista, November 2024