Housing Prices Fell 47% Since 2007 Peak

9/04/2014 – El Mundo

During the first quarter of 2014, an average price of a house declined by 6.3% in comparison to the same period in 2013, down to 1.270 €/sqm. This proves a drop-off of 47.1% in reference to the 2007 peak when the price post 2.400 €/sqm.

According to the data provided by Sociedad de Tasación, housing price slump decelerates, especially in case of top-end dwellings that saw a 3% decrease in regard to the previous year data.

The cities that observed prices climbing are Barcelona (+0.5%) and Seville (+3.4%). On the other end, there are Zaragoza and Bilbao, where houses cheapened by 14.5% and 14.1% respectively.

When it comes to provinces, the most acute dip down occured in the Canary Islands (-10.7%) and the Valencian Community (-10.5%). The slightest falls were registered in Cantabria (-1.3%), Navarra (-2.6%) and Galicia (-3%).

Although for the nearest future the appraisal company foresees further drops, it also points out that they will be much smoother than in the previous quarters.

´Confidence in economic improvement and property sales has been prevailing for the fifth consecutive month, however one shall not venture to state substantial market recovery´, concludes the report. Also, it assures that arrival of private equity firms, to an extend, will allow more rapid stock absorption.

However, the return of credit granting on a large scale has not been detected and neither has been improvement in income of families. ´Restricted access to funding undermines private investment (…)´. Another important factor negatively affecting property purchase is the elimination of tax benefits for home ownership.



Original article: El Mundo 

Translation: AURA REE