The Official Spanish House Price Index from the Property Register reveals that property prices rose 2.5 per cent in 2014, the first year this index has been positive since 2009.
Just like the Notaries, and appraisal companies like Tinsa, the Registrars forecast that Spanish house prices are now heading for stability after five years of declines.
“Data from the last few quarters confirms the change in trend in property prices, leading to a scenario of price stability with very small rises,” argues the latest report from the Registrars.
Housing Affordability Improves
The cumulative decline in Spanish house prices, coupled with falling interest rates, means that housing affordability has improved dramatically in Spain since the boom, at least according to data provided by the Registrars.
The average mortgage interest rate charged in Spain was 3.37 per cent at the end of last year, and the average mortgage payment down to a historic low of €553.44, giving a housing affordability ratio (mortgage payments / household income) of 29 per cent – in the comfort zone recommended by experts.
Other studies, however, suggest that Spanish housing affordability has not yet adjusted sufficiently, considering declining incomes and how few Spaniards have access to mortgage financing.