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October records a 36,1% drop in mortgage signing in the Basque Country

October records a 36,1% drop in mortgage signing in the Basque Country

Jeickson Sulbaran

December 24, 2023 | 7:20 a.m.

El real-estate market from Euskadi has experienced a notable decline in mortgage signing during the month of October, marking a 36,1% decline compared to the same month of the previous year. This data, reflected in the statistics of the National Institute of Statistics, shows a decreasing trend in mortgage activity in the region, mainly influenced by the high cost of credit. In October, 1.333 mortgages were signed for the purchase of homes, which represents a significant decrease in both the number of operations and borrowed capital.

This downward trend has remained constant in Euskadi, becoming more acute in October compared to the previous month, with a 21,5% decrease. The total capital lent for the signing of these 1.333 mortgages reached 195,2 million euros, 43,6% less than in the same period last year. These numbers reflect a change in the dynamics of the mortgage market in Euskadi, affected by factors such as the price of credits and the general economic situation.

The mortgage situation in Euskadi in the face of the state context

La average mortgage in Euskadi stood at just over 146.000 euros, a figure slightly higher than the State average, which was more than 140.000 euros. Compared to the month of September, there is a reduction of 16,6% in the number of mortgages signed and 21,7% in the capital lent. This decline in mortgage activity is indicative of market caution and possibly an adjustment in the expectations of buyers and sellers.

In total, in In Euskadi, 1.779 mortgages were created for the purchase of all types of properties, lending 294,7 million euros. Of these, 1.753 corresponded to urban properties and 26 to rural properties. Within the urban areas, in addition to the 1.333 mortgages for homes, 402 loans were granted for other types of urban properties and 18 for the purchase of plots of land.

In the same month, 1.827 mortgages were canceled in Euskadi, of which 1.343 were for homes. Changes were also recorded in the conditions of the mortgages, with 309 novations, 143 subrogations of the creditor and 2 of the debtor.

The contrast with the mortgage situation at the national level

At the state level, the number of mortgages constituted on homes in October also experienced a reduction, with a decrease in the 22,3%, remaining at 31.921 mortgages. The value of these mortgages reached 4.486,9 million euros, 26,4% less than in October 2022.

The mortgage market of Euskadi shows signs of adjustment and caution, reflecting trends similar to those observed at the national level. This situation highlights the need for adaptive strategies for both buyers and financial entities in the current context.

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