Foreclosures On Primary Residence Remain At Their Highest Level In Four Years
The number of foreclosures on habitual dwellings soared 253.2% in the second quarter of the year in relation to the same period of 2020 to stand at 3,243, and remains at its highest level in four years that it already reached in the first three months of the year.
The annual comparison must be framed within the health crisis. In the second quarter of 2020, Spain experienced severe confinement and the beginning of the de-escalation, so many executions could not be started in the Property Registries.
The statistics on foreclosures published this Tuesday by the National Institute of Statistics (INE) establishes for the comparison with the first quarter an increase of 1.1% in foreclosures on habitual homes between April and June.
Statistics reminds that not all foreclosures (foreclosures) end with the release (eviction) of their owners.
Breakdown by property type
In the second quarter of the year , 9,753 foreclosures were initiated , 18.1% more than in the previous quarter and 79.3% above the figure for the second quarter of 2020. Of these, 9,239 affected urban properties (where include homes) and 514 to rustic farms.
Specifically, foreclosures on urban properties rose 16.9% in relation to the previous quarter and 73.8% compared to the second quarter of 2020. Within urban properties, 5,887 foreclosures corresponded to homes, 13.7% more in quarter-on-quarter rate and more than double in year-on-year terms, and of these 4,090 were foreclosures on individuals’ homes, 5.2% more than in the previous quarter and a figure 242.8% higher than in the second quarter of 2020 .
And within the dwellings of natural persons, 3,243 executions were carried out on habitual dwellings of natural persons (as noted above) and 847 on dwellings that are not the habitual residence of the owners. The latter increased 208.1% compared to the second quarter of 2020 and 24.2% compared to the previous quarter.
For its part, foreclosures on legal persons’ homes totaled 1,797 between April and June, 39.4% more than in the previous quarter and 5.9% above the figure for the same period in 2020.
Almost 89% of home foreclosures affect used flats
Foreclosures on dwellings accounted for 60.4% of total foreclosures in the second quarter of this year and 33.2% of total foreclosures affected habitual dwellings of individuals: 18.4% corresponded to dwellings of legal persons and 8.7% to other dwellings of natural persons.
On the other hand, foreclosures on other urban properties (premises, garages, offices, storage rooms, warehouses, residential buildings, other buildings and urban uses) represented 31.6% of the total.
11.2% of second-quarter home foreclosures were on new homes and 88.8% were on used homes. The number of foreclosures on new homes increased 20.9% in both annual and quarterly rates, while that of used homes soared 123% compared to the same quarter of 2020 (a rise of 12.8% quarterly).
16.5% of the mortgage foreclosures initiated on dwellings in the second quarter correspond to mortgages constituted in 2007; 12% to mortgages constituted in 2006 and 9% to mortgages of 2005. The period 2005-2008 concentrates 45.9% of the mortgage foreclosures initiated between April and June.
Andalusia is still in the lead
By autonomous communities, Andalusia remained at the head of foreclosures on dwellings in the second quarter, with a total of 1,349, followed by Valencian Community (1,191), Catalonia (1,175) and, further afield, Madrid (530). On the opposite side, with the lowest number, were Navarra (30), Cantabria (37), and the Basque Country and La Rioja (41 in both cases).
If the total number of properties is analyzed, the Valencian Community led the number of foreclosures, with 2,183, followed by Andalusia (2,057), Catalonia (1,740) and Madrid (922). For their part, Cantabria (49), Navarra (53) and the Basque Country (68) registered the lowest number.