Housing prices rise for the first time in the last five years.

Housing prices have increased again, after five years. Only 0,91%, but the trend has been broken. However, the figure which really defines the sector is the annual one, and this one registered in the third quarter of the year a decrease of 5,3%, according to the statistics of the property registrars. But although it is still premature to talk about a recovery, there are already some analysts that consider that the landing is about to finish. According to this, the next step would be to touch ground.

The report of the registrars points out that “it will be necessary to wait for the next quarters to be able to confirm that, in fact, we are at a change of trend” or “simply within an economic situation”.

Housing prices have fallen by 31,07% since the peak of the bubble, according to registrars. Other sources, such as notaries public and valuation companies, talk of a descent of nearly 40%. In any case, “the current prices are at similar levels to the ones reached in 2003”.

The demand for houses was relatively stable, reaching 76.818 acquisitions during the third quarter, the second worse figure in history. However, the sum of the last twelve months continues providing positive figures, due to the effect of the elimination of the tax deduction on the acquisition of properties. In the last 12 months there were 334.867 acquisitions of properties (2,06% more). In reference to the second quarter there has been a descent of 2,76%.

55,36% of the operations were on second hand properties and the remaining 44,64% on new homes, which experienced an increase of 4,35% in reference to the previous quarter, maintaining  “an  acceptable  percentage  of  operations,  mainly  those  that,  directly  or indirectly, are in the hands of financial institutions”.

The regions with the highest number of acquisitions were Andalusia (15.782), Catalonia (12.411), Valencia (12.205) and Madrid (9532).

Following the trend of the last few months, the acquisition of properties by foreign citizens “continues to be one of the most important revitalizing factors of the Spanish real estate market”, representing in  the  third  quarter,  12,16%  of  the  total  number  of  acquisitions (17,2%, according to notaries). (…)

Source: Expansión