Another leading index of Spain’s home market released this week indicates that home price declines are slowing and the market may have reached a bottom.
The values of Spanish homes fell 4.0 per cent in May compared to a year earlier, according to the index tracked by Tinsa, the valuations company. That compares to a 10.4 per cent drop in May, 2013. The 4.0 per cent was also the lowest annual drop in May since 2008.
The news comes on the heels of the monthly reports from the National Institute of Statistics, housing ministry and notaries, which show a similar trend. Prices and sales are still struggling, but the declines have slowed and there are increasing signs of stablisation, the data reveals.
The similarity in the trends reported by the different agencies is worth noting. Typically, Spain’s different housing market barometers can be confusing, with each report posting radically different numbers. And the specific housing data is often impacted by several factors which have nothing to do with supply and demand. That’s certainly true over the last year, when changes in tax laws help boost sales.
But the latest reports been remarkably consistent. The Tinsa data reflects the same distinct movements as the other reports released in recent days, suggesting that a real trend can be identified.
Tinsa found the biggest declines on the Mediterranean coast, where prices were 7.9 per cent, but even that was the slowest drop since 2010. The best performer sector in the Tinsa index was the capital and large cities category, which saw a slight 3.3 per cent drop in May.
