Spain housing market sees rising mortgage values and sales in August

Spain's real estate market showed mixed results in August, according to data from the National Statistics Institute (INE). Total home sales rose by 3.4% year-on-year to 49,319 operations, driven by a 4.9% increase in new construction sales and a 3% rise in second-hand homes. However, monthly activity saw a significant seasonal decline, with sales dropping 19.7% compared to July.

Mortgage activity also grew, with 33,841 new housing mortgages recorded, a 2.3% increase from the previous year. Notably, the average mortgage amount reached a historic high of 181,285 euros, representing a 7.7% annual increase. This rise in average loan size contributed to a 10.2% increase in total capital lent, which exceeded 6.1 billion euros.

Regional performance varied significantly. Extremadura and Cantabria saw strong growth in sales, while areas like Castilla-La Mancha experienced a 9.4% decline in transactions. In Madrid, mortgage signings fell by 5.8% compared to the previous year, contrasting with the national upward trend.