June sees the biggest home buying boom in a decade

June sees the biggest home buying boom in a decade

"I've never had so much work. In June, we sold more mortgages than ever before," says an employee of the mortgage department of a financial institution. The available evidence suggests that he is right. June was the month when more homes were sold in the last decade, with the exception of December 2012, an atypical period due to the Sareb creation effect. According to the statistics of house sales published on Thursday by notaries, almost 65,000 transactions were signed in Spain for the sixth month of this year, which is an exceptional figure.

To find the best June in the real estate market, you need to go back to 2010. The growth compared to the same period in 2020 is 70%. The "cotton" test is a comparison with 2019. And there is no doubt: 41% more houses were sold than in June last year before the pandemic.

Economist Gonzalo Bernardos has no doubt that Spain is experiencing a "new real estate boom". José García Montalvo, professor of economics at Pompeu Fabra and an IVIE researcher, notes that "the statistics are clear and growing," although he believes that we need to take a little time to see how big the boom is and confirm it.

Data on INE sales will become known in a few days. Although these figures, which receive data from real estate registers, usually takes from one to two months of delay from the notary, who collects all transactions signed before the notary in a certain month.

Experts agree on the reasons for the growth of this sector. Bernardos sums up: "Now nothing is against the real estate market in Spain, everything keeps pace.» The expert recalls the good forecasts of economic growth, low mortgage interest rates, savings accumulated in many households during the pandemic, and the atmosphere of general optimistic mood due to the belief that the worst health situation (and the economy) has already passed.

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