Tinsa: House Prices Fell By 0.8% In Q3 2015

1 October 2015 – Expansión

Since their peak at the height of the real estate boom in 2007, average house prices have recorded a cumulative decline of 41.2%.

The statistics from the appraisal company Tinsa for the third quarter of 2015, published today in its IMIE Local Markets report, reveal that the downwards trend in average house prices in Spain is coming to an end, evidenced by the fact that average prices recorded a YoY decrease of 0.8% during Q3 2015, compared with a decrease of 2.9% in Q2 2015.

According to this study, since the peaks of 2007, average house prices have recorded a cumulative decrease of 41.2%.

The statistics, which are based on Tinsa’s appraisals of finished homes (new and second hand) performed all over the country, reveal a range of variations, since even in the areas that were first to anticipate the changing trend, such as the cities of Madrid and Barcelona, differences are now being seen in the evolution of prices.

Specifically, average prices in the Catalan capital rose by 7.4% in Q3 2015 with respect to the same period a year before, whereas in the city of Madrid, prices remained stable, increasing by just 0.2% YoY.

Variations by regions

Moreover, the markets showing the first signs of recovery are coexisting alongside others that have been slower to adjust and where the downwards trend will continue for a while. The latter are weighed down by a significant over-supply (of homes) and depend heavily on very local demand, where the recovery in the employment market still needs to be established.

In the third quarter of the year, the islands joined the select group of regions with positive YoY growth; during the second quarter, only Cataluña and Madrid recorded price increases. However, in the third quarter, average house prices also increased in the Canary Islands (by 2.3% YoY) and the Balearic Islands (by 0.9%). In Cataluña, prices increased by 1.4% and in Madrid by 0.7%.

At the other end of the spectrum, prices continued to decrease in Murcia (-5.1%), País Vasco (-5.6%), Extremadura (-6%) and Galicia (-6.4%), which recorded the largest YoY reductions out of all of Spain’s provinces.

Nevertheless, Castilla-La Mancha is still the autonomous region that has recorded the greatest cumulative decrease in house prices since the peaks of 2007, with a -52.1% average reduction, followed by Cataluña (-49.6%) and Aragón (-49.3%).

Original story: Expansión

Translation: Carmel Drake

Fotocasa: Second-Hand House Prices Increase In 15 CCAA

6 May 2015 – Expansión

The price of second-hand homes increased by 1.1% in April compared to March, after seven months of continuous inter-monthly decreases. The increases were widespread: they were recorded in no less than 43 provinces and 15 autonomous communities, according to statistics from Fotocasa and the IE Business School.

Moreover, house prices increased in April in 460 of the 733 municipalities analysed in this report – 63% of the total, i.e. two thirds. Meanwhile, prices remained stable in 17 municipalities and decreased in 256.

The average cost per square metre of second-hand homes amounted to €1,636 last month. In terms of the quarterly variation, the price of second-hand homes (those aged more than two years old) increased by 0.4% with respect to January 2015.

Second-hand homes got more expensive last month in 15 autonomous communities, i.e. everywhere except for the País Vasco (-0.2%) and Navarra (-0.6%). The greatest increases were recorded in the Canary Islands (up by 3% in just one month) and the Balearic Islands (+2.3%).

This index shows the stabilisation of house prices in Spain. The fact that prices are continuing to increase month after month is an indicator of a trend towards recovery.

The quarterly variation was 0.4%, something not seen since February 2010, a rate that exceeds the variation recorded 12 months ago by 1.8 percentage points.

In terms of the evolution of house prices by province, of the 43 provinces in which price rises were recorded in monthly terms, the highest growth was seen in Toledo (7.4%). Prices decreased in just three provinces: Vizcaya (-0.1%), Navarra (-0.6%) and Palencia (-0.7%). House prices did not vary in four autonomous communities.

Unsellable stock

Meanwhile, BBVA Real Estate’s Research Department said yesterday that the stock of unsold homes is going to decrease significantly, although around 300,000 homes are practically “unsellable”. Despite that, the sector’s contribution to GDP will amount to around 5% in 2015.

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake