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Tinsa: Property Value Down 4.3% in August

10/09/2014 – Expansion

The Tinsa Local Market Index states that in the month of August, housing prices slowed down their drop-off and fell by 4.3%. However, since the 2007 peaks, the adjustment has marked -41.8%.

In fact, the decline registered in August is by 1% slighter than it was in July, following the restrictive suit initiated in 2013.

Thus, although the values continue to shrink, they do it much less harshly than they used to a year before. Tinsa adds that year-to-date, the real estate prices went down by 3.2%, compared to the 8.1% slump registered in the same period 2013.

The Balearic and the Canary Islands and the Mediterranean Coast, all saw housing prices adjusting acutely year-on-year in August, showing 8.3% and 7.1% falls respectively. Since the pre-recession caps, homes in these popular Spanish regions have cheapened by 34.5% and 48.4% accordingly.

In turn, in big cities of Spain and their metropolitan areas the values dipped down 4.4% and 2.1% year-on-year in August, whereas in the rest of the municipalities the decrease post 3.5% on the same basis.

Taking into consideration the maximum levels, regional capitals and other large cities already cumulate a 45.3% depreciation, while their surrounding areas average at 43.4%.

Tinsa informs its appraisals yet do not detect any overall rise in prices and the firm´s outlook for the upcoming months depends on the economic growth and the unemployment rate.

Thus, some micro-markets still have a way down ahead, whereas the other might be already showing signs of recovery. As a result, the appraiser portends deeper falls unless the improvement arrives firm.

National Statistics Insititute reports that the home values noted down in the second quarter of 2014 indicate a 0.8% increase year-on-year , representing the first positive development since the first quarter of 2008.

What is more, last week the Registrars Association assured of a rebound of 1.5%.

 

Original article: Expansión (after: Efe)

Translation: AURA REE