Number of permanent residences in the third quarter stood at 1,721. This figure marks the lowest level for the third quarter since 2019 and shows a drop of 16.5 percent from the same period in 2022 and a 36.2 percent decline from the previous quarter.
These trends also show up in the mortgage foreclosure statistics released this week by the National Institute of Statistics. The INE collects quarterly data on the number of mortgage foreclosure certificates initiated and recorded in the Property Register during the reference quarter.
Statistics remind readers that not every lien leads to an evacuation or loss.
In the third quarter a total of 3,308 mortgage foreclosures were initiated, down 20.9 percent from the same quarter in 2022 and 38.6 percent lower than the second quarter of the year. Of these, 3,138 affected urban properties including homes, while 170 affected rural properties.
Foreclosures on urban properties declined 21.5 percent year over year in the third quarter and 38.5 percent from the previous quarter. Among urban properties tied to homes there were 2,306 executions, a decrease of 21.6 percent from the third quarter of 2022 and 37.3 percent lower than the prior quarter.
Of these, 2,089 were foreclosures on individuals homes. This rate fell 35.9 percent from the previous quarter and 18.2 percent below the figure for the third quarter of 2022.
For real households, 1,721 foreclosures occurred at habitual residences of natural persons and 368 at non habitual residences. The habitual residence foreclosures fell 16.5 percent year over year and 36.2 percent quarter over quarter, while foreclosures on non habitual residences fell 25.6 percent compared with the third quarter of 2022 and 34.6 percent from the previous quarter.
Meanwhile, foreclosures on houses owned by legal entities totaled 217 between July and September, down 48 percent from the prior quarter and 43.9 percent lower than the same period in 2022.
91.5 percent affects used floors
In the third quarter residential foreclosures represented 69.7 percent of all foreclosures. Fifty two percent were tied to the residences of real persons, 6.6 percent to the residences of legal entities and 11.1 percent to other real person residences.
Liens on other urban properties such as condominiums, garages, offices, warehouses and other urban developments accounted for 22.7 percent of the total.
Eight point five percent of home foreclosures occurred in the third quarter with 91.5 percent of cases involving new and used homes. Foreclosures on new homes dropped 28.4 percent year over year and 27.8 percent quarter over quarter, totaling 197 cases. Foreclosures on used homes fell 20.9 percent, reaching 2,109 executions in the quarter.
Mortgages from 2006 accounted for 15.7 percent of residential foreclosures in the third quarter, with 15 percent in 2007 and 11.1 percent in 2005. The majority of foreclosures initiated between July and September come from mortgages originated in 2004 to 2008, totaling 56.3 percent.
Andalusia leads the executions
Within autonomous communities, Andalusia ranked first with 592 housing executions in the third quarter. It is followed by the Valencian Community with 448 and Catalonia with 440. Navarra, Cantabria and the Basque Country recorded the lowest totals with 5, 15 and 18 respectively.
Looking at the total number of foreclosures by property type, Andalusia also leads with 864 foreclosures in total, followed by the Valencian Community with 652 and Catalonia with 576. Navarra, Cantabria and the Basque Country posted the smallest totals with 8, 23 and 39 respectively.
Source: National Institute of Statistics quarterly data on foreclosure certificates and property records. Attribution: INE statistical bulletin on mortgage foreclosures for Q3 data.