Spanish property prices are still falling, but less with every passing month, according to the monthly house price index published by Tinsa, one of Spain’s leading appraisal companies.
Average Spanish property prices fell by 4.4% over 12 months to the end of May, show the latest figures from Tinsa. That said, prices actually fell a fraction compared to last month, even if they rose compared to the same month last year.
If the Tinsa figures are to be believed, the rate of decline in Spanish property prices has been slowing since June 2009, when it peaked at -10.1%.
If the trend towards smaller declines keeps up, average property prices will be stable, or even growing slightly before the end of the year.
Coast and Islands doing best
Suprisingly, prices have fallen the least over 12 months in coastal areas and the Islands, areas traditionally popular with foreign buyers looking for holiday and retirement homes. Prices are down just 4.1% on the coast, and 2.4% in The Canaries and The Balearics
The following table gives the annualised % change for selected regions in May:
Peak to present
On a peak to present basis (since prices peaked in December 2007), prices are down 16.5% nationally, 21.4% on the Mediterranean coast, and 12.8% in the Canaries and the Balearics. So anyone buying a property on the coast today should be getting a discount of 21% on average compared to 2007.
As always, it needs to be pointed out that Tinsa’s figures are based on their own valuations, not actual transaction prices. Most of these valuations have been paid for by banks, and for several reasons they might not give a true picture of property prices . Nevertheless, they are interesting in what they reveal about trends, not to mention the valuations used by banks for mortgage lending purposes.
Mediterranean coast: 2,035
Balearics & Canaries: 1,641
Peak Index (December 2007)
Mediterranean coast: 2,590
Balearics & Canaries: 1,881