14 January 2015 – Expansión
The price of finished housing (new and used) declined by 3% year-on-year in 2014, compared with a 9.2% decrease in 2013, according to Tinsa’s General and Major Markets IMIE Index, published today. The appraisal company believes that prices could break even during the first few months of 2015.
The five areas analysed in the study show that the deterioration in prices has moderated over the last year. Specifically, the ‘Metropolitan’ area recorded a decline of only -0.2%, compared with -11.5% in 2013.
The ‘Balearic and Canary Islands’ recorded a decrease of -2%, which is not far off the -3.2% recorded in those regions in 2013; and ‘Capitals and Major Cities’ recorded a fall of -2.8%, versus a reduction of -11% in 2013.
“The most significant variations over the last twelve months were recorded in ‘Other Municipalities’ (-4.7% year-on-year) and on the ‘Mediterranean Coast’ (-4.5%)”, said Tinsa.
From the highs of 2007, the IMIE, which stood at 1,343 points in December (the same level as in July 2003) has recorded a cumulative decline of 41.2%.
The evolution of prices in 2015 will depend on the economic situation and the level of employment, which will determine demand, says Tinsa. “If growth forecasts are fulfilled, the labour market stabilises and the proposed improvements in lending are realised, then the average price of housing in Spain may break even during the first few months of the year, with a year-on-year variation of around 0%”, it concludes.
Original story: Expansión (by M. G. Mayo)
Translation: Carmel Drake