The Price Of Housing Falls By 4,4% Year On Year In July And 40,3% During The Financial Crisis
13/08/2014 – El Economista
The drop in prices is softened by the improved economic outlook
The average price of housing fell by 4,4% last July compared with the same month in 2013 and has accumulated a drop of 40,3% since the maximum reached in 2007 before the crisis began, according to the valuation firm Tinsa.
The fall in the seventh month of the year is more pronounced than that of 3% recorded at the end of June, primarily due to the one-offrise which the index experienced between June and July 2013, a trend which has not been repeated this year.
However, the July’s reduction was much more moderate than the 9,2% decline which 2013 ended on. Whether or not this trend will continue, according to Tinsa, will depend on the favourable forecasts for economic growth, financing and stabilising of jobs in Spain being proven right.
The areas of the Mediterranean coast were those that suffered the most notable fall in July compared with a year earlier (7,7%), followed by the largest cities and their metropolitan areas, which recorded inter-annual price reductions of 5,4% and 5,2%, respectively.
Prices rise in the Balearic and Canary Islands
The remaining areas not included in other categories were the other group which registered a decline in their values versus July 2013, albeit a more moderate one (-4,3%).
In contrast, the Balearic and Canary Islands made a comeback, with their positive trend translating into a year on year rise of 4,2%, consolidating the change of direction that was already noted in June.
The Mediterranean coast, for its part, was the area with the greatest cumulative reductions since reaching their maximum values, with a 49,1% decline in July. Next were the regional capitals and large cities with 44,1%, metropolitan areas with 42,8% and the remaining areas with 35,2%. The Balearic and Canary Islands are last on the list, with the lowest accumulated reduction (-27%).
Original article: El Economista
Translation: Aura REE