5 June 2015 – Expansión
According to Tinsa’s IMIE General and Large Markets Index, the average price of new and used housing decreased by 3.6% during the year to May 2015.
Specifically, the index stood at 1,322 points. Tinsa has explained that “the intense downwards variation experienced by the index from June 2014 onwards explains the significant inter-annual differences, even through average prices have remained relatively stable since November”.
Moreover, according to this index, the average house prices in Spain have accumulated a decrease of 42.7% since the peaks of 2007.
Prices by regions
The report also highlights that the average house price in Spain was 1.6% cheaper in May than at the end of 2014; a similar trend has been on the islands (the “Balearic and Canary Islands”), where the cumulative fall with respect to December 2014 amounts to 1.5%.
Towns on the “Mediterranean Coast” are the only ones that closed the first five months of the year with positive growth (+1.4%), although there, average prices in May 2015 were still 2.3% below those recorded in May 2014.
The “Capitals and large cities” recorded the worst performance of all of the areas analysed in May, with a 4.9% YoY decrease. In terms of the intensity of the decrease with respect to the same period last year, they are followed by the “Metropolitan Areas”, with a 3.8% drop and smaller towns, grouped together within the category “Other municipalities”, where average prices were 2.7% lower than in May 2014.
It is important to remember that Tinsa’s IMIE index is compiled using appraisal (values) for finished homes (new and used) prepared by the company. This means that it reflects prices assigned by the appraiser, on which market prices are based, versus other indices, such as the one prepared by the Registrars, which is based on the prices the feature in the deeds signed before Notaries.
Original story: Expansión
Translation: Carmel Drake