In this post we focus on differentiate between New Construction market and Secondhand Market due to the significant activity increase of the New Construction segment.
In Second Hand market we have made 5 % more transactions compared to the same period last year. If we take into account both, New Construction market and Second Hand, this increase in operations would be 50% over the previous year.
In all areas where we work the Second Hand market continues marked by a lack of product, a bit like is happening in the rental market. So the market is fluctuating a bit. When there is a good portfolio with properties at market price and there is a proven demand, sales are activated. Whereas if there are properties in price ratios where demand is much lower, sales slow down.
It should be noted that there is a financing offer exceptionally competitive in order to purchase housing and it benefits both the Second Hand market and the New Construction, and it is one of the major drivers in the market recovery.
If we analyze the Second Hand market in terms of our offices, there are different behaviors:
• Sant Cugat del Vallés: Perhaps the area where the market has changed more significantly, both in number of transactions and price increases. Clearly, the first half has been sold in ranges of price much higher than in the same period last year, from an average price of almost € 350,000 at an average price of almost 600,000 €. The average price impact is up 15 % over the same period last year.
• Sant Just Desvern and surrounding area: This area has also experienced an improvement, but much lighter. The average selling price remains close to 400,000€. Repercussion prices have been maintained similar to the same period of the previous year and the activity has increased approximately 10 %.
• Barcelona: It is the area where in this period we have had less activity than the previous year. Still, the average price is at a higher range which had been the previous years, currently above 500,000€. The market behavior in areas where we work was as follows :
o Diagonal Mar: it remains being an area of low stock available and high demand. Prices remain high, in our case, the highest in all areas where we have sold this 2016.
o Sant Gervasi: It remains being a very active area. In this area, the condition and the characteristics of the housing has a lot of influence on the price. On average, sales of this semester of 2016 have been at a higher price than the previous year’s price. The average impact was 3,800 € / m2 built but in a range that goes from 2,600 to 4,800 € / m2.
o Gracia: in this district we have maintained a level of sales and prices almost unchanged from the same period last year.
o Eixample: as happens in Sant Gervasi the price can be very variable in the same district. In this case, more because of its location than for its condition. The average impact has remained stable compared to previous years and is located in a range that goes from 3,200 € / m2 to 5,400 € / m2.
Flats sales has accelerated slightly over the same period last year. In 2015 we had the second-hand rotation centered at approximately 6 months and the first half of 2016 has been 5 months.
As we have noted before, today financing is highly competitive; the first half 55 % of Second Hand buyers have obtained it. This is a similar percentage of the same period last year.
As always emphasize, these are our data and are marked by the stock of available properties at our disposal.