BBVA Research, which is part of Spain´s BBVA bank, has published a survey that suggests the property market is beginning to slow down across the country as a whole, and that could be a trend for the immediate future.
BBVA says that “home sales are showing a certain sluggishness, despite the fact that conditions remain favourable.”
They commented that the figures that they have in regard to new building projects suggest that there won´t be any big leaps in the property market over the next few months.
BBVA Research point out that home sales grew by just one per cent in April according to figures from the Spanish Notaries (though sales were up four point five per cent seasonally adjusted) and argue that “uncertainty continues to have an impact on home sales, which have not shown a major boost in recent months, though there are great variations across Spain”.
The growth in new mortgage lending is also slowing down, they point out, describing it as “practically stagnant, despite the fact the economy is promising for the housing market, especially with the low interest rates.”
Other measures they give pointing towards a perceptible slowdown in the Spanish housing market include a fall in the number of land deals closed in April, and the first fall in construction jobs in 39 months.
Despite a slowdown in home sales, land sales, and construction employment, BBVA Research forecast that house prices will continue rising between three and five per cent, depending on which Spanish region you are in.