June the biggest boom in house sales in Spain

08.08.2021

Last June a record number of homes were sold in Spain. In total there were 64,877, or 71.2 percent more than in June 2020. The economic recovery now also seems to be continuing in the real estate market.

Home sales during the month of June were almost as good as in June 2010, when 76,314 homes changed hands. In 2010, that peak was still related to a tax increase announced by the government from January 1, 2011.

Even if the boom of June 2021 is colored by the ailing sales during the pandemic, it is still a real increase. In June 2019, the year before the Covid-19 crisis, only 45,912 homes were sold.

Alberto Alcázar, President of the Real Estate Programs at the IE Business School explains; “This increase certainly has to do with the fact that the economy is improving. The Spanish figures for 2021 and the forecasts for 2022 show not only that the real estate sector is on the rise, but also that the economy is slowly recovering.”

The large Spanish real estate platform Idealista also confirms that the housing market is doing well, largely thanks to the vaccination campaign and European aid. “The numbers show the strength of the housing market recovery,” said platform spokesman Francisco Iñareta. “It looks like we are leaving the crisis of the pandemic behind us.”

The largest growth is in single-family homes, with no less than 78.4 percent compared to last year. And that despite the fact that those 16.5 percent have risen in price. Sales of apartments increased by 69 percent compared to last year. There they saw a price decrease of 1.8 percent compared to June 2020.

Another factor contributing to the increase is the good conditions that the banking sector offers to borrow money. “The banks continue to 'gift' money,” claims José Ramón Molinos, “They are competing to give interest that we have never seen before.”

As you can see, now is definitely the time to buy a (second) home in Spain. It is generally expected that prices will continue to rise, at least until the end of 2022.