Spanish property prices are still falling, especially on the coast, according to fresh data from two different sources. Average prices fell by 10.1% over 12 months to the end of June says the Spanish property price index published by Tinsa – one of Spain’s leading appraisal companies – whilst new figures from the Ministry of Housing indicate that prices fell by 8.3% over the same period, not including social housing.
Tinsa’s Spanish property price index
Average prices for new and resale property (not including social housing) are down 10.1% over 12 months, but prices on the coast, where most of Spain’s holiday homes are located, are down 12.3%, say Tinsa. Price declines on the coast eased ever so slightly compared to May, when they fell 12.8% year on year, thanks to a small summer sale bounce.
Next came big cities and provincial capitals, including Barcelona and Madrid, where prices dropped by 10.5% on average.
House prices in the suburbs fell by 9.9%, and by 9.3% in The Balearics and The Canaries, where prices falls were steeper this month than last month.
Average prices are now 13% off the December 2007 peak. Prices on the coast are down almost 18% off the peak, according to Tinsa.
If the Tinsa figures are to be believed, price declines have stabilised at around -10% this year compared to last year, as the chart below shows. That, however, doesn’t fit with the 20% to 30% declines quoted by developers and some agents. As usual, it’s difficult to know what is really happening to prices in Spain.
Ministry of Housing property price index
The Ministry of Housing has also published its price index for the second quarter, showing that prices fell by 8.3% over 12 months to the end of June. Prices fell just under 2% on a quarter to quarter basis, and fell in all regions save the Spanish territories in North Africa of Ceuta and Melilla. The average property now costs 1,920.90 Euros/m2.
Prices are down the most in Cantabria (-10.1%), followed by Madrid (-9.8%), Asturias (-9.3%), The Valencian Community (-9%), The Balearics (-9%), Murcia (-8.8%), The Canaries (-7.8%), Andalucia (-7.6%), Galicia (-7.5%), Catalonia (-7.2%), and Extremadura (-1.1%).
The following chart shows the Ministry of Housing’s property price index (blue line), along with consumer price inflation (red line).
The government’s figures, if they are to be believed, also hint that the rate of price declines might be slowing down. Developers have seized on this to warn buyers that the bulk of the price adjustment is now in the past.