Rampant unemployment, low demand despite falling prices, the removal of tax benefits and onerous loan conditions being applied by banks do not explain the continued obsession with building more houses but it does account for the fact that the number of mortgages granted in July fell to an all-time low.
Houses for cash
The continued inability to obtain mortgages, falling house prices and increased residential tourism have led to a situation where, in the first half of 2013, almost half of house sales in Málaga province were through cash transactions.
Mortgage transactions continue to fall
The number of new mortgage transactions in May fell by 29% compared to the same month last year.
New mortgages continue in decline
The number of new mortgages signed during the first quarter of 2013 fell by 34.1% compared to last year with 16,270 transactions being completed.
Mortgages continue in decline
The number of new mortgage transactions fell by 47.1% in February when compared to the same month last year, the twenty-second consecutive month of decline on an interanuual basis.
21 consecutive months of decline
The number of new mortgages signed during January was 41.3% down on the same month last year, the twenty-first consecutive month of decline on an interannual basis.
House sales continue to fall
According to the National Statistics Institue (INE), the number of mortgages signed in December fell by 12.5% compared to the previous month, making it twenty consecutive months of decline.
Record low number of mortgage transactions
The number of people taking out mortgages for homes fell by 41.7% in August compared to the same month in 2010 with just 29,231 transactions, the lowest figure since comparable statistics were introduced in 2003.
Euribor closes at 1.545%
The twelve-month Euribor, the indicator most widely used for calculating mortgage rates, closes January 2011 at 1.545, the highest monthly rate since June 2009. This will make average mortgages more expensive by €20 per month compared to one year ago.
19 banks denounced for unfair practices
The Asociación de Usuarios de Banco, Cajas y Seguros (Banks and Insurance Users Association) has denounced in court a total of 19 banks, including the Cajasol and Cajamar, of unfair practices by limiting mortgage rate decreases.