Spanish property prices fell by 7.7% over 12 months to the end of the second quarter, according to the latest Spanish property price index published by Spain’s National Institute of Statistics (INE). If true, it suggests that property prices might be starting to bottom out.

As shown by the graph above, new build (vivienda nueva) prices continued on their downward trend, falling by 3.9% in Q2 compared to the same time last year. But prices for resale property (vivienda de segunda mano) bucked their downward trend for the first time since the INE starting publishing the index, with prices falling by less in the second quarter (-11.2%) than in the first (-12.5%).

By region, prices fell the most in places where they were highest, for example Catalonia, The Basque Country, and Madrid. They fell only moderately in destinations popular with foreign buyers like Andalucia and Murcia.

The problem, as usual, is that the official figures are hard to stomach. They would have us believe that new build property prices have only fallen by 6% since the crisis began. Even the developers say prices are down by 20% or more.

Meanwhile, residential planning approvals were down 62% to 71,638 in the first half of the year, according to the Ministry of Development.