The Tinsa property price index for December shows average prices falling by 6.6% over the last 12 months, the same rate as which prices fell in the 12 months to November. Tinsa is one of the largest appraisal companies in Spain.

The rate of annual price declines has shrunk every month since June, so this is the first time in 5 months that the annualised price decline isn’t below the previous month. What does that mean? Not much, but it does represent a pause in the trend towards moderating price declines.

Last month I reported that, on present trends, prices will be rising again in a few months. Well, not if the latest figures have anything to do with it.

On the other hand, the price of property in the coast, where most foreigners buy holiday homes, did continue its positive trend, with prices down 7.6% over 12 months, compared to 8.9% last month. But price falls accelerated slightly in The Balearics and The Canaries, another popular destination.

On a peak to present basis, prices have fallen the most on the coast (-20.8%), followed by the suburbs (-16.7%), big cities and provincial capitals (-14.8%), and the islands (-13.3%).

As always, I need to point out that Tinsa’s figures are based on their own valuations, not actual transaction prices. They may be, probably are, quite wide of the mark. Nevertheless, they are interesting in what they reveal about trends, and the valuations used by banks for mortgage lending purposes.