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Housing foreclosure in Spain: -29% in Q4 2018 to 1.551 houses

18 Mar
2019

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Housing foreclosure in Spain: -29% in Q4 2018 to 1.551 houses

 

This is a very good news for the real estate sector in general and for the property owners in Spain in particular.

The annual rate of housing foreclosures in Spain is 0.05%

The total number of registrations for foreclosure on dwellings initiated in the third quarter of 2018 was 1.551 houses vs 2.181 in the same quarter of 2017 and 4.696 in 2016. We talk about properties owned by private person only. If we had to talk about housings in general, the number is 7.182 foreclosed properties during the quarter.

This is what the Instituto Nacional de Estadistica just published in its report.

 

29% decrease vs 2017

For 2017, 27.171 properties were foreclosed, (housing and others) i.e. 0.1% of all the properties existing in Spain. According to the census, there are 25m properties in Spain, follow the link and check our table on that.

This is a nice decrease of 34% vs the numbers of 2016.

Look at the evolution of foreclosure over the last 4 years.

 

It is an impressive 3 year in a row decrease since 2014: -34% in 2017, -31% in 2016, -15% in 2015.

 

Default rate by initiation date

As you can see on this chart, the default rate is the highest and represent about 50% of all defaults for the mortgages initiated between 2005 and 2008… when the prices where at the top… and just before the crisis.

 

As you can see on our chart, prices were much higher at that time: €2.100 vs €1.619 now (December 2018).

 

Which years have the most defaults vs number of issued mortgages?

Most impacted regions during Q4 2018

Regions with the highest foreclosure rates  for housing are: 

  • La Rioja, 0.26% of all existing properties, 121 housing during the quarter
  • The Valencian community, 0.16% of all existing properties, 1.696 housing during the quarter
  • Castilla y Leon, 0.14% of all existing properties, 228 housing during the quarter

 

Foreigners active in the same regions

It could represent a nice opportunity for foreigners as they are active in all those regions. As a reminder, foreigners bought 16% of all transactions during the last year.

Click on the image and get our last report analyzing where foreigners are buying real estate in Spain in 2017.

 Our reports on how to buy a property in Spain

Why are foreclosures decreasing?

The three main reasons are:

 

Do you want to find bank repossessions in Spain right now?

Do you want to have a look at properties repossessed by Spanish banks? Have a look at our article, one of the most read of our site, on that subject: Spanish bank repossessions: Your ultimate guide to 120.000 properties.

If you are looking at buying a property on the Costa Blanca, this is our most recent paper:  The last bargain on the Costa Blanca? 12.000€ for a Spanish Bank repossession

 

Are you looking for a competitive rate for your mortgage in Spain?

 

 

Here was the update of the last quarter of 2017

  • The annual rate of foreclosure in Spain is 0.1%

The total number of registrations for foreclosure on dwellings initiated in the fourth quarter of 2017 was 2.103 houses vs 4.696 in the same quarter of 2016.

That is what the Instituto Nacional de Estadistica said in its last report.

  • 34.2% decrease for 2017

For 2017, 27.171 properties were foreclosed, i.e. 0.1% of all the properties existing in Spain. According to the census, there are 25m properties in Spain, follow the link and check our table on that.

This is a nice decrease of 34.2% vs the numbers of 2016.

Look at the evolution of foreclosure over the last 4 years.

 

It is an impressive 3 year in a row decrease since 2014: -34% in 2017, -31% in 2016, -15% in 2015.

  • Default rate by initiation date

As you can see on this chart, the default rate is the highest and represent about 50% of all defaults for the properties acquired in 2006, 2007 and 2008.

  • Regions with the highest foreclosure rates  for housing are: 
  • The region of Murcia 0.43%, 3.252 units
  • Andalusia 0.42%, 13.644 units
  • Valencian community 0.42%, 10.212 units

 

Check the full press release in Spanish.

 

Looking for an expert in Spain? Ask us directly!

 

Stéphane 

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

 
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