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Report: Home Prices Rise Most in Eight Years

Sotogrande_CROPPED (1024 x 558)Average resale home prices in Spain rose 1 per cent in August from a month earlier, which was still enough to claim the highest monthly increase in eight years, according to property portal fotocase.es.

That number is a bit deceiving, since Fotocasa shows prices in August were still down 6.3 per cent from a year earlier. But that compares to a 9.7 per cent annual decline in August of 2013, and the market can now claim the second positive up of 2014, after a slight 0.2 per cent monthly increase in January.

The 1 percent increase may not sound like a major move, but it is still the highest monthly increase since April 2006, when second-hand home prices rose 1.1 percent, the portal reports.

Fotocase.es is not regarded as one of the official data sources, but it is another barometer of the market and its conclusions are in line with other recent pricing reports.

The average resale price now stands at €1,656 a square metre. That is a 43.9 per cent drop from the record high of €2,952 a square metre recorded in April 2007, fotocasa reports. Basque Country is still the most expensive in Spain, with an average price of €2,919 a square metre, followed by Madrid at €2,205 a square metre.

Prices rose in August in 13 of the 17 autonomous regions, led by a 3.3 per cent monthly increase in Murcia.

Of the 368 municipalities tracked by fotocasa, 179 posted price increases in August, while 11 remained stable and 178 showed declines.

SPI Member Comments

3 thoughts on “Report: Home Prices Rise Most in Eight Years

  • I’m pretty sure Fotocasa must use asking prices for their data, in which case it might be just a case of properties with lower asking prices selling while properties with higher asking prices staying on the market, which skews the data. Personally I haven’t seen a single increase in asking price on Fotocasa or Idealista (and I do keep quite a close eye on the Madrid area)

    • Chopera, are you Spanish? I have noticed that on all the Spanish forums and newspaper comments that no one seems to believe the prices increasing hype. Except of course the Spanish property sales websites. Apart from the usual comments about Spanish twisted stats. One sensible one said that most sales are just moving the properties from one set of books to another companies books, real sales are too thin to reach any conclusion. Another claimed the banks up rating their balance sheets.
      Surprisingly not reported on this site ,because of the high number of foreclosures this year, the banks have more properties on their books than last year. To get an unbiased view and news burbuja inmobiliario is an informative website, although in Spanish.

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