Tag: IMIE Local Markets Index

Tinsa: House Prices Rose By 0.8% In Q4 2016

4 January 2017 – El Mundo

Average house prices in Spain rose by 0.8% during the fourth quarter of the year with respect to the same period in 2015, according to provisional data published in Tinsa’s IMIE Local Market Index. According to the appraisal company, the stabilisation in prices, which is in line with the YoY variation recorded during the third quarter of the year, “reflects micro-market multiples, which are evolving at different speeds”.

The index highlights that Cataluña, which saw an increase of 7.2%, the Community of Madrid (5.2%) and País Vasco (4.3%) continue to be the drivers of the housing market in Spain, followed by the Canary Islands and Andalucía, which saw price rises of 2.8% and 2%, respectively, in terms of YoY variation during Q4.

At the other end of the spectrum, the highest price decreases were recorded in the regions of Murcia (-4.8%), Castilla y León (-3.9%) and the Balearic Islands (-3.1%). Price decreases were also observed in Cantabria (-2.1%), Navarra (-1.9%), Asturias (-1.3%) and Aragón (-0.9%), which closed the year with lower prices than in Q4 2015.

According to Tinsa’s report, homes are now at least 5% more expensive than they were a year ago in up to six provinces. Barcelona (8.4%), Palencia (7.8%) and Guipúzcoa (7.4%) saw the highest price rises over the last year, followed by Málaga (with growth of 6.6%), Madrid and Almería (both of which recorded YoY rises of 5.2%).

By contrast, the provinces of Huelva and Lérida registered decreases of -6.9% and -6.5% over the last year, respectively. The provinces of Orense, León, Murcia and Valladolid are saw prices decreases of more than 4%.

Cities

By provincial capital, house prices rose significantly over the last year in San Sebastián (12.1%), Bilbao (11.6%) and Barcelona (11%), well above the increases recorded in Madrid, Málaga and Palencia, where average prices rose by 6.3%, 5.4% and 5% YoY, respectively.

This evolution contrasts with that recorded by the group of 29 capitals where average prices are lower than they were a year ago, led by León (-11.1%), Murcia (-7.3%), Valladolid (-6.6%) and Lugo (-6.2%).

Tinsa’s detailed analysis of the residential market in Spain’s five largest provincial capitals reveals significant price increases in certain districts of Barcelona, Madrid and Valencia. That was the case in the neighbourhoods of Gràcia and Eixample in Barcelona, where the average price of finished homes rose by 16.5% and 15.1% YoY, respectively.

In Madrid, the highest price rises were concentrated in the areas of Hortaleza (13.4%), Centro (11.9%) and Tetuán (11.4%). (…).

The Barcelona district of Sarriá-Sant Gervasi continued to be the most expensive neighbourhood of the five large capitals analysed, at €3,901/m2, followed by Les Corts (€3,716/m2). In the capital, the neighbourhood of Salamanca, with an average price of €3,645/m2 exceeded prices in Chamberí (€3,562/m2), which saw the highest price rises in the city last quarter.

Rate of sales

According to Tinsa, average sales periods (…) have decreased below 10 months for the first time since this indicator was first compiled in Q2 2015, to 9.9 months across Spain. (…).

Original story: El Mundo

Translation: Carmel Drake

Tinsa: Most Homes Bought In 2015 Cost Between €50k & €100k

31 December 2015 – El País

(…) Most of the homes bought this year cost between €50,000 and €100,000. That has been the most popular price range in the provinces of Madrid, Valencia, Sevilla, Zaragoza, Málaga and the Canary Islands. Homes were more expensive in Barcelona and the Balearic Islands, where they typically cost between €100,000 and €150,000. Those are the findings of Tinsa’s IMIE Local Markets Index for Q4, published yesterday, which concludes that the average price of finished homes (new and second-hand properties) rose by 1% in Spain in 2015.

This data, which represents the first YoY increase since the beginning of 2008, reflects the changing trend in the evolution of prices. Just a year ago, in the last quarter of 2014, the same index reflected a YoY decrease of 4.5%. (…).

During 2015, average prices increased the most in YoY terms in the Catalan provinces of Girona (10.7%), Barcelona (5.8%) and Lleida (5.3%), as well as in Albacete (4.5%) and Madrid (3.3%). In terms of provincial capitals, Barcelona led the ranking with a YoY increase of 8.5%, followed by Badajoz (5.7%), Ávila (4.3%) and Madrid (3.8%). Prices are expected to increase at rates of less than 5% during 2016. Nevertheless, the evolution of the market will be determined by the political panorama in Spain, as well as by the high level of debt that the economy and families still hold, and the quality of new jobs. The creation or otherwise of new solvent demand will be the main driver, to the extent that the pent-up demand, which is currently boosting the market, loses power.

“We should not forget that the market is extremely heterogeneous and is moving at different speeds depending on the area. If we compare average prices in Q4 2015 with those from the same period last year, then average prices have increased in 21 provinces and 15 provincial capitals, but at the same time, they have decreased by more than 5% in nine provinces and ten provincial capitals”, say sources at Tinsa. (…).

How long does it take to sell a property on average? 

On average, it takes 10.2 months to sell a home in Spain, compared with 10.6 months as at June 2015. Cantabria is the province where sales take the longest: 18.6 months. Sales periods significantly above the national average are also reported in the provinces of Álava, Segovia, Ávila, A Coruña, Salamanca and Vizcaya, where it takes more than 14 months on average to sell a home. The provinces where buyers are found most quickly include: Ceuta (3.7 months), Melilla (5.3 months), Soria and Santa Cruz de Tenerife, both with an average of seven months.

Barcelona stands out as the provincial capital that requires the greatest financial effort to buy a home, with 23% of gross annual household incomes being used to finance the first year of mortgages. Meanwhile, Madrid is the major provincial capital with the most liquidity when it comes to selling a home, since it takes less than six months (5.8 months) on average to sell a home, compared with 6.1 months in Barcelona and 13.5 months in Valencia.

Original story: El País (by Sandra López Léton)

Translation: Carmel Drake