INE Reports First Home Price Rise in Six Years

Apartments_barcelonaThe National Statistic Bureau’s (INE) home price index rose 0.8 per cent in the second quarter from a year earlier, the first annual increase in the index since the market collapsed in 2008.

The biggest jump was in the prices of new home, which rose 1.9 per cent, although there were few new home sales to use as a comparison a year ago. Prices for second hand home rose a slight 0.2 per cent.

Home prices were up 1.7 per cent from the first quarter.

The INE’s index is in line with other recent reports, which have also shown slight price increases in many markets. The Association of Registrars also showed a 1 per cent increase in the second quarter and property portal fotocasa.es reported property prices were up in August from July, although still down from a year earlier.

But INE’s index is considered one of the bellwethers of the market. And the new housing price index data will certainly bolster perceptions that the market is swinging toward positive territory.

INE’s index showed a 1.6 per cent drop in the first quarter, after two years of steep declines. The largest drop was in the third quarter of 2012, when prices fell 15.2 per cent compared to a year earlier.

INE_Second Quarter_Index (1024 x 635)

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