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 2.4% YoY In September

10 October 2016 – Expansión

House prices are rising at a strong pace, residential sales are recovering and mortgages are coming back, timidly, along with cranes. The residential market has left its worst years behind it and is setting itself up for a robust recovery, without any signs of the excesses that created the real estate bubble.

Statistics published on Friday confirm that the wind is blowing in the right direction for the real estate sector. The average value of free (unsubsidised) homes grew by 2.4% YoY in September, according to Spain’s largest property appraiser, Tinsa. The cumulative increase in prices during the first nine months of the year amounts to 2.9%.

At the same time, sales of unsubsidised homes also rose in August by 19.9% YoY, driven by the strong performance of the second hand segment, which accounted for 82.8% of the market, according to INE. The number of operations involving new homes rose by 3.3%, whilst the number of second-hand home sales rose by 24.6%.

In August, 35,501 residential properties were sold, up by 7.3% compared to July. The cumulative increase during the first eight months of the year amounted to 14.8%.

Nevertheless, the experts warn that “the monthly variation, albeit positive, is not sufficiently high following the decrease registered in the previous month”, said Manuel Gandarias, Director of Research at Why? Because in the house sales figures registered in August included operations outstanding from July, due to a Supreme Court ruling regarding late payment interest, which means that the increase should have been greater. “In September, we will also see quite a bulky increase”, added Gandarias.

“The crisis has left a two-speed real estate market and the behaviour of prices and sales will continue to be very uneven”, warned Beatriz Toribio, Head of Research at Fotocasa. The autonomous regions that have seen the highest increases in house sales are the Balearic Islands (49.2%), Cataluña (+41%) and Navarra (+38.1%) Meanwhile, Murcia (-5.2%), Galicia (+4%) and the Community of Madrid (+10.4%) recorded the lowest increases. “The worst is behind us in Cataluña, Madrid, the Balearic Islands, the Canary Islands and most of the Mediterranean Coast, but the outlook is not nearly as encouraging in the rest of the country”, said Toribio.

According to Tinsa, prices are growing by more in the Balearic and Canary Islands (+4.4%) than in the rest of Spain, although they are followed very closely by the Mediterranean Coast (+4.3%). In the major cities, prices rose by 2.5% in September. “The worst is behind us, but the recovery will be slow”, summarised Toribio.

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

INE: Hotel Prices Up By 17.7% So Far This Year

16 August 2016 – El Economista

The price of hotels and other accommodation increased by 17.7% during the first seven months of 2016, according to data published by Spain’s National Institute of Statistics (INE).

Nevertheless, prices in those establishments fell by 2.4% in July compared with the same month last year, after they had increased by 3.7% compared with the previous month.

On the other hand, the price of air transport in Spain decreased by 3.8% in July compared with the same month in 2015. Meanwhile, air travel prices increased by 5.2% with respect to June and by 6.7% cumulatively during the seven months to July.

In terms of road transport, prices rose by 0.4% in July compared with July 2015. With respect to June, those prices remained stable (0.0%) and rose slightly (+0.1%) cumulatively during the year to date.

Meanwhile, the price of railway transport rose by 0.3% in July compared with the same month in 2015. There was no change in railway prices compared with the previous month, and during the seven months to July 2016, the increase amounted to 0.1%.

Original story: El Economista

Translation: Carmel Drake