Housing Prices Declined by 9.2% in 2013

The price of houses tapers down again, more sharply than ever. In December, in spite of (timid) optimistic atmosphere that encompassed the real estate sector, the free property value appraised by Tinsa reduced by 9.2% in inter-annual terms, by two points more than in November. After 3 months of the slump´s cooling down, the rebound is considerable. The reason is a greater depreciation on the Mediterranean coast, both in big cities and their smaller administrative units.

In this way 2013 summarised the statistics with one of the worst dip down in the real estate history, better only from the score of 2012, according to Tinsa.

The Better Perspectives

Since September the sector´s agents have been observing an increase in investors´interest, especially the foreign ones, probably due to the significant discounts. Also, the market volatility because of the small number of sales (their price serves as reference for valuation) contributed to the meagre score.

In December, however, the tendency veered again. Another leargest valuation company in the sector, Sociedad de Tasación (ST),  confirms the news. Yesterday it published somewhat similar data, estimating the decline at 8.7%.

(…) The optimism evoked at the end of the year was not so premature, though. The analysts and ST still reckon that the residential property value will continue to dwindle, but less abruptly. (…).

Not in vain, the average housing depreciation reaches 45,6% comparing to 2007. At the end of 2013, the average price per square meter was 1.307 Euros, while six years ago it was 2.401 Euros.

Tinsa points out that “the loss will be harsher in case of low quality houses (-17,4% in annual terms) than in case of good quality ones (-6,4%).

If it comes to new houses, the numbers calm their fall down in the second half of the year, watching the prices within the province capitals setting down at 2.039 Euros per square meter (-7,8% annually and -3% compared to the other semester).

All the valuation data goes in tune with the real prices and the notarial deeds (…).

In fact, BBVA Research claims that the demand will remain “low” and “there will be no big surprises in the following months”.

The least bearish data among the news made public yesterday is that the Real Estate Trust Index (ICI in Spain) climbed from 30,6 points at the beginning of 2013 up to 36,3 in December. (…) Tinsa calculates the index value basing on opinion of 700 specialists of the sector.

Source: Expansión