The Spanish Mortgage Association (AHE) is the latest body to argue that Spanish property prices are stabilising after years of decline. The AHE represents the majority of mortgage lenders in Spain.
Spanish property prices “continue to show signs of stability in the third quarter of 2014,” says the latest report from the AHE. The organisation comes to this conclusion based on three statistical sources offering data on property prices – the Ministry of Public Works (Fomento), the National Statistics Institute (INE), and the General Council of Notaries.
The Association reports that Fomento data, based on property purchases, points to a 2.6 per cent year-on-year fall in property prices in September 2014, “considerably below” the rate recorded for the same period in 2013. For its part, the National Statistics Institute index shows a slight upward turn of 0.3 per cent in the third quarter.
Regarding change in the square metre prices published by Spanish notaries, the latest figure for property (July 2014) shows an annual decrease of 2.6 per cent.
The Spanish Mortgage Association underlined that household property wealth, measured in terms of GDP, also reveals “signs of stability” in line with the slowing decline in property prices.
Household wealth is also improving, say the AHE, as a result of lower borrowing costs and deleveraging leading to lower levels of debt.
So the AHE has added its voice to the growing crowd of organisations arguing that the Spanish property crash is slowly coming to an end.