40 Percent of Bank Owned Properties are Paid in Cash But Creating Distorted Data
23 Jun 2013
Santander, BBVA, Caixabank, Sabadell, Popular and Bankia sold approximately 7,200 mortgage-free properties in the first quarter of the year thanks to a fall in prices and the transfer of money from certain financial products into real estate. The total value of these sales amounts to approximately 600 million euros.
This means that 40% of the properties sold by the banks in the first quarter of the year (18,000 units) would not have required any financing. Per entity, the number of properties sold finance-free is:
- Sabadell: 1,550 units
- Santander: 2,000
- Caixabank: 1,064
- Bankia: 550 (estimated figure while waiting for official data)
- BBVA: 1,020
- Banco Popular: approximately 1,000
Sabadell is the entity that sold the highest number of properties in the first quarter without a mortgage. CEO, Jaime Guardiola, stressed last week that 62 % of the 2,497 properties 'placed' by this entity in the first quarter were paid for in cash. One of the reasons for this is the nature of the product being sold by Banco Sabadell, the average price of which was 80,000 euros. In fact, 89% of sales are taking place at prices below 100,000 euros.
However these figures do not help the market for Spanish bank repossessions for the international property buyer in Costa del Sol according to Nick Stuart Managing director of Spanish Hot Properties. The real issue is that 80,000 buys you something quite nice in Costa Blanca but in Costa del Sol it buys you nothing of substance and you need at least double that to buy a good international property. However most would be international buyers read statistics like this and believe they can buy something wonderful for 100,000 Euros in Costa del Sol and this just is not the case said Nick.
For more information about the true state of the Spanish property market visit http://www.spanishhotproperties.co.uk/
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- "Honest and supportive Nick managed the whole process from start to finish and made sure the whole sale and mortgage approval went through smoothly"