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Home purchases continue to decline at the end of 2023 and the price per square meter already falls by 2% in 2024.

Home sales in November experienced a decrease of 7.5%, accentuating the crisis in the real estate market. Mortgage loans also suffered a significant reduction of 17.7%, totaling 23,512 operations. Furthermore, the price per square meter decreased by 2%, reflecting the difficult situation of the sector, as revealed by the General Council of Notaries.

Deep Analysis of the Situation:

Sales in Numbers: In November, 55,033 home sales were registered, evidencing a year-on-year drop of 7.5%. Apartments experienced a reduction of 6.4%, while single-family homes fell 10%. The crisis affected thirteen communities, with Madrid leading the decline with a shocking 21.2%.
Impact on Financing: Mortgage loans for home acquisition plummeted by 17.7%, reaching only 23,512 operations. The average amount of loans also decreased by 7.3%, standing at 140,290 euros. 42.7% of home purchases were financed with mortgage loans, indicating a lower ability to access credit.
Price per Square Meter: The price per square meter experienced a reduction of 2% year-on-year, standing at 1,582 euros. Apartments fell by 2.1%, reaching 1,763 euros/m², and single-family homes fell 2.4% to 1,249 euros/m². Despite the general decline, some places such as Castilla-La Mancha and La Rioja experienced significant increases of 16.5% and 11.3%, respectively.

Reflections on the Future:

The crisis in home purchases and the decrease in price per square meter in November pose significant challenges for the real estate market. Lack of access to mortgage loans and decreased transactions may affect short-term recovery.