The data reflects the growing consensus that the price declines are slowing and may hit a bottom in the next year. The drop compared to an 8.3 per cent decline in the fourth quarter of 2013. Two regions – Extremadura and Galicia – reported increases in prices in the second quarter, according to the company’s sales reports. Prices were up 2.8 per cent compared to the same quarter a year earlier, while Galicia prices ticked up a slight 0.1 per cent.
Tinsa labeled the latest data as a continuation of the “property price stabilization process initiated in 2013.” But many of Spain’s biggest markets still experienced sharp drops, including a 9.9 per cent drop in Madrid, 7.6 per cent in Valencia and a 4 per cent slide in Catalonia.
The overall average level of prices is comparable to the third quarter 2003, with prices down 39.6 per cent from 2007, Tinsa says. In Castilla-La Mancha and Catalonia the rice drops are closer to 50 per cent.
But the latest index data shows that the period of steep price declines may be coming to a close. However, Tinsa remained cautious, noting that even in Extremadura, where prices increases, the uptick should be “seen in a general process of stabilizing prices,” and that future declines cannot be ruled out before values “definitely touch ground.”
Get the full report (in Spanish) here.