Sale of Spanish Homes on the Increase after 17 months of Declines

A bargain - Three bedroom townhouse for sale in Finestrat

The sale of homes in Spain increased (yes, that is right) increased to a total of 27,708 transactions in August, representing a small increase of 1.2% per month and 3.0% year on year, according to data from the National Statistics Institute (INE). This is the first rise in sales after 17 months of declines.

The data released yesterday by the INE is obtained from property records, which register the data with a delay of approximately two to three months after the completion and signing at the notary. Therefore figures for the month of August would actually refer to transactions closed in May-June, and therefore would not take into consideration the knock-on effect created by the Government announcement in July of this year of the end of tax relief and the increase in IVA (VAT) on new housing from 2013.

In theory, we should see a continued rebound in the number of transactions for the next few months and certainly up to the end of the year.