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May Saw Houses Depreciating by 4% & Landing on August 2003 Levels

11/06/2014 – El Economista

According to report drawn by Tinsa, in May average prices of houses declined by 4% in comparison to the same month a year earlier. Accumulated slump shows 40% now since the maximum levels in December 2007. On contrast, they settle on similar level as the values of August 2003.

However, the drop has been slighter than the average 6.3% registered during the past year. If the accumulated decline from the first five months considered, mean housing prices went down by 0.9%.

In spite of fact, in several regions the tendency seems to upturn, Tinsa calls for cautiousness as the improvement must be confirmed by few consecutive months.

Year-over-year, the price development differed in accordance to area. The Mediterranean Coast municipalities noted down the sharpest fall by 7.9% in regard to May 2013, while big cities and the rest of Spanish towns marked an average depression of 3.9%.

Speaking of the Canary and the Balearic Islands, the values declined 3.8% in the last year, whereas large cities and capitals showed a more delicate decrease of 3.3%.

In reference to peak 2007 prices, the most affected area seems to be the aforementioned Coast hitting 47.7%-off on houses, followed by capitals and large cities (-43.8%) and metropolitan areas (-42.6%). In the rest of municipalities, the slump is not so eye-catching with general -33.9 and -30.6% in the Islands.

 

Original article: El Economista (after Europa Press)

Translation: AURA REE