Average national house prices declines an annualised 2.7 per cent across Spain in January, according to the TINSA General and Large Markets Index (IMIE in Spanish). Tinsa is one of the largest appraisal firms in Spain.
This is the first time since 2008 that Spanish house prices have fallen less than 3 per cent in January, point out Tinsa.
“The figure confirms the trend towards stabilisation the residential market has been moving towards since the second quarter of 2013,” explains the Tinsa report. “The 9.2 per cent fall registered by the average property price in Spain during 2013 has been reduced to 3 per cent in 2014 as a whole. Since its peak in 2007, property has fallen by an average of 41.6 per cent.”
Tinsa forecast a continuing trend towards stable prices in the short term, depending upon the evolution of economic and employment growth and expectations thereof.
Oversupplied market segments in areas with weak demand will be the big exception, and can expect prices to continue falling.
The Spanish islands of the Balearics and the Canaries saw the most impressive price change, with house prices up 3.8 per cent, the only positive result. Prices on the Mediterranean coast, where foreigners tend to buy second homes, fell the most, by 5.3 per cent.
The peak-to-present fall can be seen in the following table, broken down by area (and highlighted in red).