Tag: cumulative decrease

Tinsa: House Prices Rose by 5.4% in April

7 May 2018 – Eje Prime

House prices are continuing to rise unabated. Finished home prices (new and second-hand) rose by 5.4% in April compared with the same month last year, driven by rises in the capitals and large cities, which saw price increases of 8.7% with respect to April 2017, according to Tinsa’s index.

On average, house prices have now risen by 10.3% since the minimum level reached at the beginning of 2015, although they are still 36.7% below the peak of the boom recorded in 2007. Prices along the Mediterranean Coast were the most severely hit during the crisis, given that they have recorded a cumulative decrease of 45.8% since their maximum level.

That region is followed by the cumulative decreases in prices in metropolitan areas (42.8%) and, despite having seen an 18.6% increase in their value since May 2015, prices in large capitals are still 36.6% below their 2007 levels.

The capitals and large cities are still continuing to perform the driving role in terms of the reactivation of the market, together with the metropolitan areas and the Balearic and Canary Islands, where prices have risen by 5.7% and 5.6%, respectively.

Original story: Eje Prime

Translation: Carmel Drake

Ministry Of Development: House Prices Rose By 1.5% In 2016

24 February 2017 – ABC

The average price of private (unsubsidised) housing amounted to €1,512/m2 in the fourth quarter of 2016, representing a YoY increase of 1.5%. As such, the indicator recorded seven consecutive months of rises, according to data published yesterday by the Ministry of Development.

According to the same source, prices rose by 0.8% in Q4 compared to the third quarter of 2016.

Nevertheless, house prices are still well below their peaks of the first quarter of 2008 (-28% lower). On the other hand, prices have now recorded a cumulative increase of 3.4% since their minimum values, recorded in the third quarter of 2014.

In real terms (excluding inflation), between October and December last year, house prices in Spain rose by 0.5% with respect to the same quarter in 2015 (to record nine consecutive quarters of increases), according to the Ministry of Development, which added that we are now seeing a slowdown in the growth rate in real terms due to an increase in CPI.

In the case of new homes (those aged less than five years old), prices rose by 1.5%, to an average of €1,764.2/m2. The price of houses aged more than five years old also rose, by the same percentage, to an average price of €1,503.6/m2.

Meanwhile, house prices rose in nine of Spain’s autonomous regions led by Madrid (4.8%), Cataluña (4.4%) and the Canary Islands (3.8%). The most significant decreases were recorded in Navarra (2.8%), Murcia (2.6%), Castilla y León (1.5%) and Asturias (1.3%).

In towns with more than 25,000 inhabitants, the highest absolute house prices were recorded in San Sebastián (€3,059.8/m2), Barcelona (€2,822.1/m2), Sant Cugat del Vallès (Barcelona) (€2,779.2/m2), Ibiza (€2,772.4/m2), Getxo (Vizcaya) (€2,681.9/m2), Santa Eulalia del Río (Ibiza) (€2,640.7/m2) and Madrid (€2,628.6/m2).

In smaller towns, the most expensive homes were sold in Ontinyent (Valencia) (€522.7/m2), Elda (Alicante) (€540.6/m2), Alcoy (Alicante) (€552/m2), Jumilla (Murcia) (€552.9/m2), Villena (Alicante) (€560.4/m2) and Novelda (Alicante)(€573.8/m2).

Finally, the average price of social housing amounted to €1,124.30/m2 during the fourth quarter of 2016, representing a rise of 2.6% with respect to the same period in the previous year.

Original story: ABC

Translation: Carmel Drake

Registrars: House Prices Rose By 5.7% In 2016

15 February 2017 – Expansión

House prices rose by 5.6% in 2016, according to data published yesterday by the College of Registrars. In QoQ terms, this means that homes became 1.9% more expensive during the last three months of the year, whereby recording their ninth cumulative quarter of increases. These findings come from the Index of House Prices for Repeated Sales (IPVVR), prepared using the Case-Shiller methodology, which analyses only those homes that have been sold at least twice during the period under analysis, i.e. since 1995. This methodology is considered to be one of the best ways of measuring the true evolution of house prices and is the benchmark that is used in the USA.

The other key finding from the Registrars’ statistics is that the volume of homes sold increased by 13.9% last year, to 403,742, up by 49,205 compared to 2015. In this way, house sales exceeded the psychological barrier of 400,000 transactions, something that has not happened since 2010. (…).

The data from the College of Registrars in terms of house sale volumes is almost identical to that published last week by Spain’s National Institute of Statistics (403,900 operations and an increase of 13.7%). As such, the really interesting findings from the Registrars’ statistics relate to prices.

For example, the index shows that since the peaks of 2007, average house prices have recorded a cumulative decrease of just over 25%. By contrast, with respect to their minimum levels (recorded in 2014), average house prices have registered a cumulative increase of 13.3%. House prices rose by 6.6% in 2015 and by 2.55% in 2014.

Prices return to 2004 levels

Although the Registrars do no specify the average cost of homes per m2 in absolute terms, they do report that house prices are now at similar levels to those recorded in the middle of 2012 and at the end of 2004 (…).

These figures “seem to indicate the future trend to the extent that it seems reasonable that house prices will continue to grow, normally by more than 1% per quarter, giving rise to YoY increases of around 5%”. In other words, house prices are expected to continue to grow at rates similar to last year. (…).

Increases across the board

The breakdown in house sales shows that price increases were recorded in every autonomous region in 2016 with respect to 2015. The greatest rises were observed in the Balearic Islands (+30%), Cataluña (+21.1%) and Asturias (+17%). Moreover, growth rates reached doubt digits in twelve autonomous regions. For example, the rate in the Community of Madrid was 13.85%, in line with the national average.

Forty-nine of Spain’s 52 provinces have now left price decreases behind. In fact, the sales volumes of second-hand homes increased in every province in 2016, led by Madrid (58,752 transactions), Barcelona (46,415), Alicante (29,688), Málaga (26,436), Valencia (21,963), Baleares (13,811), Sevilla (12,900), Murcia (11,972), Las Palmas (11,272) and Cádiz (10,288).

The fourth quarter of the year closed with the highest percentage of purchases by foreigners in 2016, representing 13.57% of the total, giving rise to the third highest figure ever. (…). During the year as a whole, overseas buyers accounted for 13.25% of the market, with almost 53,000 purchases.

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

Tinsa: House Prices Rose By 2.2% In Q1 2016

14 April 2016 – 20 Minutos

House prices rose by 2.2% during the first three months of the year. According to Tinsa, the price of flats and houses increased by 0.8% in March with respect to the same month last year.

The appraisal company considers that the average price of homes in Spain is following a “moderate” positive trend for the time being – in other words, it is increasing moderately -. The cumulative decrease since the peaks of 2007 amounts to 41%, according to Tinsa’s IMIE General and Large Markets Index.

By geographic region, the Balearic and Canary Islands, and Mediterranean Coast recorded YoY price increases of 4.3% in March in both cases. Prices rose less sharply in metropolitan areas, with a YoY increase of 2.8%. By contrast, house prices decreased in March in other towns (-1.6%) and in capital and other major cities (-0.3%).

On a cumulative basis since January, the largest increase in house prices were recorded in the Balearic and Canary Islands, with growth of 5.1%. They were followed by price rises in other towns (+3.4%), the Mediterranean Coast (+3.1%), metropolitan areas (+2.2%) and capitals and other major cities (+0.6%).

Since the peaks of 2007, house prices have decreased by 41%. The Mediterranean Coast is the area where prices have decreased by the most (-46.5%), followed by capitals and other major cities (-45.1%), metropolitan areas (-43.8%), other towns (-36.1%) and the Balearic and Canary Islands (-29.1%).

Original story: 20 Minutos

Translation: Carmel Drake

Second-Hand House Prices Have Fallen By 44.5% Since 2007

25 November 2015 – El Economista

Second-hand house prices in Spain have decreased by €105,999, on average, since they reached their maximums in April 2007, according to the latest analysis from the real estate portal fotocasa.es. It reports a cumulative price decrease of 44.5% since the start of the crisis, when the cost of buying a home measuring 80m2 amounted to €236,174, on average.

“Second-hand homes are driving up the real estate sector at the moment. In addition to the extensive supply, these homes are more attractive in terms of prices, since they allow more room for negotiation and they are levied with lower taxes”, says the Head of Research at fotocasa.es, Beatriz Toribio.

By autonomous region

In terms of the reduction in second-hand house prices by autonomous regions, Cataluña is the region where prices have decreased the most. Specifically, sales prices have decreased there by an average of €142 ,512 in eight years, which represents a decrease of 46.1%.

At the opposite end of the spectrum, Extremadura is the autonomous region that has seen the lowest decrease in sales prices in recent years. There, the average reduction amounts to €59,745, after prices reached maximum in March 2007; this represents a decrease of 39.6%.

Original story: El Economista

Translation: Carmel Drake

Tinsa: House Prices Fall In May 2015 By 3.6% YoY

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

Ministry Of Development: House Prices Rise In 7 CCAA In Q1 2015

2 June 2015 – Cinco Días

The Canary Islands, Aragón and Madrid lead the ranking in Q1 2015.

In real terms, the average national increase was 0.9%.

In Spain as a whole, the average price of unsubsidised housing amounted to €1,457.90/m2 at the end of Q1 2015. This represents a negative variation with respect to the previous quarter (-0.36%) and the previous year (-0.11%), according to data published on Monday by the Ministry of Development.

However, this decrease did not take place in every region. Positive variations were recorded in some regions with respect to the same period in 2014. House prices increased in 7 regions: Canary Islands (3.56%), Aragon (1.9%), Madrid (1.67%), Valencia (0.69%), Extremadura (0.57%), Balearic Islands (0.1%) and Andalucía (0.05%).

The other regions experienced YoY decreases: Asturias (-6.53%), Castilla y León (-3.72%), Navarra (-3.15%), Galicia (-2.29%), País Vasco (-1.47%) and Murcia, Ceuta and Melilla (-1.35%).

At the national level, and in real terms, the price of unsubsidised housing experienced a YoY increase for the second consecutive quarter, rising by 0.9%.

If we look at the historic series of the Ministry’s statistics, the average price per square metre has decreased by 30.4% since its peak in the first quarter of 2008. The decrease has been even greater in real terms: 36.3%.

The five regions in which prices have decreased the most are: Aragón (-38.47%), Murcia (-38.28%), Castilla – La Mancha (-38.25%), Valencia (33.89%) and Cataluña (33.56%). At the other extreme (where prices have decreased the least) are the autonomous cities of Melilla (-5.19%) and Ceuta (-8.63%), followed by Extremadura (-16.75%), País Vasco (-20.52%) and the Balearic Islands (-22.74%).

In towns with more than 25,000 inhabitants, the highest prices per square metre are located in four regions. The two most expensive municipalities are in País Vasco, with San Sebastián leading the ranking (€2,996/m2), followed by Getxo (€2,663/m2). In third place is the Madrid suburb of Pozuelo de Alarcón (€2,489/m2). Calvía (€2,438/m2) in the Balearic Islands occupies fourth place and Sant Cugat del Valles (€2,433) in Cataluña is in fifth place. The cities of Madrid and Barcelona occupy sixth and seventh places (€2,411/m2 and €2,397/m2, respectively).

The cheapest places include Elda (€591/m2); Almendralejo (€592/m2); Tomelloso (€610/m2); Ontinyent (€611/m2); Jumilla (€620/m2); Novelda (€628/m2) and Credvillent (€632/m2).

Finally, the average price of subsidised social housing in Spain during Q1 2015 was €1,095.40/m2, i.e. 0.41% lower than during Q4 2014, whilst the variation with respect to the same quarter in 2014 was a decrease of -0.68%.

Original story: Cinco Días (by Amanda Andrades)

Translation: Carmel Drake

Tinsa: House Prices Decreased By 3.67% In February

12 March 2015 – 20 Minutos

House prices have recorded an average cumulative decrease of 42.6% since the end of 2007.

Homes on the Mediterranean Coast have lost more than half their value.

Prices may bottom out in the next few months.

In areas with low demand and significant stock, further price decreases are expected.

A change in the real estate cycle has begun; but since it is a cycle, the changes will not happen overnight. In this way, although prices are now rising in some areas of Spain, in many others, they are still declining and those areas are, for the moment, in the majority.

According to data published by Tinsa, house prices fell by 3.67% in February with respect to the same month in 2014. On the Mediterranean Coast, homes have lost more than half of their value due to the crisis, but prices may bottom out in the next few months.

With respect to the peak prices recorded at the end of 2007, house prices have recorded a cumulative decrease of 42.6%, according to the index prepared by Tinsa. On the Mediterranean Coast, the decrease has been much more pronounced, according to the appraisal company, which highlights that in this region, the cumulative decrease during the crisis has amounted to 51.1%.

In February, house prices decreased by 4.9% and 4.4%, respectively, in large cities and metropolitan areas. Since the peak of the cycle, capitals and large cities have recorded a cumulative decrease of 46.5%, whilst metropolitan areas have experienced a cumulative reduction of 45.5%.

By contrast, the Balearic Islands and Canary Islands recorded a year-on-year increase of 0.7% (in Feburary), whilst on the Mediterranean Coast, the decrease was 4.7%. From the peak levels recorded before the crisis, house prices on the islands have decreased by 32.4%.

In the towns included within “other municipalities”, the decrease in February with respect to the same month in 2014 was 2.1% and since the peak, was 36.1%.

Optimistic forecasts?

Tinsa notes that average house prices began a stabilisation process in 2013, characterised by a moderation in the rate of decline in average prices. “If the optimistic forecasts that various official bodies are predicting for economic growth and employment are fulfilled, then average prices in Spain may bottom out in the next few months”, says the company.

However, it warns that this forecast does not exclude the fact that in localised markets, where demand is particularly weak and there are significant levels of stock, (downwards) adjustments are still expected and there may yet be significant year-on-year decreases.

Original story: 20 Minutos

Translation: Carmel Drake

Tecnocasa: Second-Hand House Prices Increase By 1.12%

19 February 2015 – El Mundo

Second-hand house prices have increased in value (y.o.y) for the first time since 2010.

The average price is now €1,458 per m2 after a cumulative decrease of 58% since 2007.

“The decrease (in house prices) has come to an end and we expect the market to remain stable for a while”.

House prices are also recovering in the second-hand home segment. Without a doubt, the hardest hit by the crisis. According to Tecnocasa’s 20th Report about the housing market (el XX Informe sobre el mercado de la vivienda), used homes increased in value by 1.12% during the second half of 2014, which represented the first increase since 2010. From the peaks recorded during the first half of 2007, this real estate segment has experienced a cumulative price decrease of 58.21%. During the first half of 2014, the fall was minimal, a token 0.04%.

The company reports that the average cost of second-hand homes is now €1,458 per square metre and that, therefore, the slump in prices has come to an end. “The decreases have come to an end and we are beginning a phase of stability”, says the firm, which prepared the study together with the University of Pompeu Fabra (UPF) of Barcelona. “In any case”, it adds, “we expect prices to remain stable for some time”.

By city, Sevilla recorded the largest decrease in the cost of used housing (-4.5%), whilst Barcelona experienced the greatest increase (+5.84%). “The decline in Sevilla reflects the fact that prices began to fall a little later in Andalucía”, said Tecnocasa in a statement. In terms of average values, the lowest continue to be in Valencia (€775 per square metre) and the highest in Barcelona (€2,011/m2).

José García-Montalvo, Professor in Economics at UPF and the coordinator of the report, wanted to stress that whilst the sector “continues to be significantly effected by an improvement in the short term”, he does not expect “a price explosion”, but rather a period “marked by stability”. In this sense, he explained that there has been a “change in terms of expectations” in the Spanish real estate sector, since the market “is no longer ruled by buyers”; sellers are “again able to set prices and conditions”.

The average mortgage decreases to €90,333

Paolo Boarini, CEO of the Tecnocasa Group in Spain, has analysed the financial data and house buyer profile for the second half of 2014. During the period, the average mortgage decreased by 2% (on a year-on-year basis compared with the second half of 2013). This decrease brings the average mortgage down to €90,333.

According to the report, the decrease in the average mortgage is due to the low level of house prices and the decision by banks to reduce loan risk. Moreover, the percentage of mortgages granted to people with temporary employment contracts has deceased from 38% (of the total) in 2005 to 7.6% in the second half of 2014.

In terms of the loan to value ratio, it remains low (72% in the second half of 2014), although, that did represent an increase from 67% in the first half of 2014. The reductions in interest rates and in the size of mortgages has contributed to a decrease in monthly mortgage payments. Such payments averaged €976 in 2007, but now amount to €382. This means that the ratio between the monthly mortgage payment and the monthly salary of the borrower now sits below 30%; a figure that reflects the conservative behaviour of credit institutions.

Boarini highlights that the market is undergoing a period of “stabilisation”, after the speed of decline “decreased in recent years”. In addition, he assures that we are currently seeing “a situation that would not have occurred in previous years, with low prices and good financing conditions”.

Methodology

The Tecnocasa Group’s report has been prepared using data from transactions brokered by its associates. Specifically, based on sales managed by Tecnocasa and loans granted by Kiron, the entity’s financial services company.

Original story: El Mundo

Translation: Carmel Drake