Adjustment in Housing Prices Slows Down to 3.9% in Q2

23/07/2014 – Expansión

Tinsa´s Local Markets Index shows that in the second quarter of 2014, housing prices fell by 3.9% on year-on-year basis. To compare, the values went down by 6.7% in the first quarter of the year and by 8.3% in the last three months of 2013.

Taking into account these figures, the property price adjustment reaches -39.6% since Q4 2007 peak and right now the values equal to those from the end of 2003.

Positive price development was registered  in Extremadura (+2.8% YOY) and Galicia (+0.1% YOY), proving to be the first since Q3 2008.

Further pricing correction is not ruled out. According to Tinsa, general tendency points at moderately negative development.

In comparison with the second quarter of 2013, the Community of Madrid´s home values dipped down most (-9.9%), followed by the falls in La Rioja (-8.2%), Castille-La Mancha (-7.8%) and the Valencian Community (-7.6%).

In turn, regions like Catalonia (-4%) or Cantabria (-4.2%) stayed very near to the national average. In Aragon, houses depreciated by 2%, in the Balearic Islands by 3.1%, while in Melilla by 3.3%.

If the analysis extended over the past seven years, Tinsa´s index shows that the sharpest slumps in property values were witnessed in Castille-La Mancha (-51.5%) and Catalonia (-50.6%) which are the only regions where they crossed 50%.

On the other hand, prices in Melilla declined by “mere” 15.3% during the recession, while the rest of the Spanish regions saw over 25% price slashes. Just over this cap we find Extremadura (-27%) and Galicia (-29,7%), while (aside from Castille-La Mancha and  Catalonia) Madrid´s Community (-47.6%), La Rioja (-47.4%), Aragon (-46.1%) and the Valencian Community (-45.6%) are closer to the opposite extreme.

 

Original article: Expansión

Translation: AURA REE

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