Housing Price Slump Decelerates in Q1. Houses Cheapen by 1.6%

10/06/2014 – Expansion

In the first quarter of 2014 housing prices kept falling, however not as abruptly as they did in 2013. Year-over-year, houses lost 1.6% of their values and in comparison to the previous quarter, they fell by 0.3%. Figures went up in Madrid, the Basque Country, Cantabria and the Balearic Islands for the first time since 2008.

Housing Price Index (HPI) also showed that other regions still watch the prices declining: Murcia by 4.4% with the ratio by 9.4 bps higher, Castilla-La Mancha by 6% with 8.9 bps up, followed by the Canaries (–4.7%, +2.1 bps) and the Valencian Community (–2.6%, +3.8 bps).

In the Q1 2014 over the Q4 2013, HPI dipped-down by 14 bps in 17 regions. The sharpest slumps were seen in Navarra (–3.1%) and the Balearic Islands (–2.1%). However, five regions registered positive quarterly rates. Madrid (1.2%) and Murcia (0.5%) performed best among them.

Talking about housing units, this month´s statistics show that both new and resales houses become equal facing the slump: the new falls 1.1% YOY (+7 bps over Q4 2013), whereas resales appreciate 6 bps to -1.7%. Likewise, new houses prices went up 0.1% in quarterly terms, while used units values decreased 0.4%.

 

Original article: Expansión (by M. C. G.)

Translation: AURA REE

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