11 December 2015 – El Economista
Experts at the real estate portals agree that the data published last Thursday by Spain’s National Institute of Statistics (INE) is positive. It shows a YoY increase in house prices of 4.5% during the third quarter, the highest since the start of the crisis.
Moreover, the experts consider that, although the recovery in the residential sector is not homogenous across the whole of Spain, it is likely that price increases will be seen in all regions next year.
The Director of the Research Office at pisos.com, Manuel Gandarías, said that “prices will begin to increase across the board in 2016, after the areas with limited supply and high demand finished their downwards course months ago”.
“The overvaluations experienced in certain towns have all but adjusted to the new pace in the market, and few locations will see notable decreases, given that an equilibrium has now been achieved”, he added.
Meanwhile, the Head of Research at Fotocasa, Beatriz Toribio, believes that INE’s data “reflects that the housing sector has now left behind the large price decreases”, but she warns that “that does not mean that prices have bottomed out”.
“Over the next few months, we will see fluctuations characteristic of the normalisation that is happening in the sector, and it will become more apparent that the sector is recovering at two speeds, given that whilst in certain areas, sales and prices are on the rise, in others, the trend will continue to decrease for quite some time”, she added.
Sales are also normalising
Similarly, the Head of Research at Idealista, Fernando Encinar, said that the price data from INE “signals the normalisation of the sector”. (…).
The Ministry of Development also published data on Thursday about house sales, which showed that the number of transactions increased by 16.3% during the third quarter, to 93,528 units, the highest volume for that period since 2009. Encinar believes that “this is good news, although not a surprise for the sector”.
“The data also confirms the forecasts that the sector is going to normalise at two speeds, with operations growing by more than 20% on a YoY basis in some regions, and the rate of increase barely exceeding 6% in others”, he said.
Original story: El Economista
Translation: Carmel Drake