Housing Prices Remained Stable in October
The Spanish housing market (new and used property) remained stable in October. The IMIE House Price Index, from Tinsa, was unchanged since October 2015 standing at 1,379 points. Over the first ten months of the year the average price in Spain has increased only 2.2%
Of the groups Tinsa evaluates only “Capitals and Major Cities” saw an increase in average values in October. Year-on-year growth in this group was 1.6%. Meanwhile, the “Mediterranean Coast” and “Other Cities” recorded slight annual declines of 0.6% and 0.4%, respectively.
The situation of the residential market is noted for it’s stability of late. Jorge Ripoll, director of research at Tinsa, said: “We maintain the forecast that the year will close with a growth in prices, expected below 5% on average.”
Ripoll also suggested that despite the low increase expected as a national average there are “…certain areas where the upward trend is more consolidated, such as the cities of Madrid or Barcelona.”
January-October
The average price in the Spanish housing market has maintained a positive balance so far this year. Accumulated growth for the first ten months is 2.2%. “Capitals and Major Cities” were mainly responsible for this increase having seen increases of 3.3% since January. Another group, “The Islands” (Balearic and Canary Islands) also showed growth with prices increasing 3.8% so far this year. The only group to see a decline is “Metropolitan Areas” which saw prices fall by 0.6%. The “Mediterranean Coast” has accumulated an increase of 2% since January.
Variation from Maximum
The average price in Spain has a cumulative decline of 40.9% since the peak of 2007. This is even greater in the “Mediterranean Coast” where it reaches 47%. In the “Metropolitan Areas” the cumulative decline is 45.4%, while in “Capitals and Cities” it is 43.6%. “The Islands” have seen a cumulative decline of 30% since 2007, while “Other Municipalities” have suffered a 36.8% decline.
