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Nuria Triguero
Malaga
Monday, 30 September 2024
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It is not strictly a price indicator, but the average amount of mortgages that are taken out serves to know how the housing market is progressing. Furthermore, this data confirms similar signs when visiting real estate portals or any estate agents' showrooms: the price of housing is soaring in Malaga province. Residential mortgages signed in July in the province were for an average of 230,462 euros. Only the Balearic Islands and Madrid reached higher figures (240,697 and 233,546 euros respectively), which means that Malaga now has the third most expensive average mortgage in the country. Barcelona is now in fourth position at 185,888 euros, but the national average is much lower at 151,944 euros.
The average amount taken out on a mortgage in the province has risen by 10% year-on-year for July. Bear in mind, however, that these figures may be influenced by the type of homes that have been mortgaged in each month - for instance, in one month there could be several very high value properties that distort the average. To avoid this effect, we can look at the cumulative sum of all mortgage deals done in the first seven months of the year in Malaga province. In this case, the average amount is 195,652 euros and the year-on-year increase (compared to the same period in 2023) is 15%.
Thus, the specific figures vary depending on the period chosen, but the trend is the same: the average mortgage is rising steadily in line with house prices.
July saw a recovery in the mortgage market after several months of a fall in lending for house purchases. In Malaga 1,556 deals were registered, 8.5% more than in the same month of 2023. At national level the increase was more intense, 23.5%, making it the strongest month of July for sign-ups since 2010. Experts interpret that the start of the interest rate cuts by the European Central Bank (ECB) is beginning to encourage the market, despite the fact that the prices of flats continue their unstoppable rise.
Just last Friday it was revealed that the Euribor rate is set to fall below 3% in September for the first time since November 2022. Until last week the 12-month Euribor daily rate was averaging 2.946%, with a clear downward trend, with the last days of September hovering around 2.77%. This will translate into a considerable reduction in the mortgage payment that most homeowners in Spain will pay.
Nevertheless, half - or even more in some months - of the homes are bought in cash in Malaga, a much higher percentage than was usual in the province. In July, for example, 3,171 homes were sold and 1,556 mortgages were completed, indicating that only 49% of transactions were financed by mortgage products. This suggests that many buyers are either investors or people who have sold one home to buy another without needing such a loan.
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