11 May 2016 – Expansión
House prices remained stable in April, increasing by just 0.1% with respect to the same month last year, according to Tinsa’s IMIE index.
“The average price of finished homes, both new and second-hand, continued to increase, but in a more moderate way, after registering YoY rises of 0.8% and 2.1% in March and February, respectively”, said the appraisal company.
However, the positive balance continued during the first four months of 2016, with an average increase of 1.9% between January and April. In addition, the index has recorded a cumulative decrease of 41% since the peaks of 2007 and has now returned to the level last seen in Summer 2003.
Following YoY growth of 4.4% in the Mediterranean Coast, the next best YoY movement in April was reported in towns clustered close to metropolitan areas, which in April reported stable prices, in line with those recorded a year ago.
The capital and large cities showed a slight YoY decrease, of -0.2%, followed by the Balearic and Canary Islands, where prices fell by -0.4%. The group of other municipalities (small and medium towns not included in other areas) reported a decrease of -0.9%, although they have performed the best out of all of the groups during the year, with a cumulative increase of 3.8% between January and April.
The average price of homes across every area was higher in April than at the end of 2015. The following areas reported above-average price growth between January and April (for Spain as a whole, the average was 1.9%): other municipalities (+3.9%), the Balearic and Canary Islands (+2.9%) and the Mediterranean Coast (+2.7%). At a slower pace, growth in the metropolitan areas amounted to 1.1% during the first four months of the year and to 0.7% in the capitals and other major cities.
The average decrease in Spain since the peak of 2007 now amounts to 41.1%. The Balearic and Canary Islands (-30.6%) and other municipalities (-35.8%) recorded below-average cumulative decreases. The Mediterranean Coast continued to reduce the difference with respect to the peak of the cycle, with the average cumulative decrease there now amounting to -46.7%, followed by capitals and major cities (-45.1%) and metropolitan areas (-44.4%).
Original story: Expansión
Translation: Carmel Drake