The Spanish House Price Index published by Tinsa, an appraisal company, was down 3.6 per cent in February compared to the same month last year, reminding us that the Spanish property crisis is still with us as far as the overall market is concerned.
Including the latest fall in February, The Tinsa ‘General and Large Markets Index’, is now down 42.6 per cent peak-to-present for the country as a whole, with house prices on the Mediterranean coast down more than 50 per cent, according to Tinsa.
As was the case in January, the Balearics and Canaries were the only area to registered a positive result in February, up 0.7 per cent, although nothing like the 3.8 per cent notched up in January.
At the other extreme, the biggest year-on-year decrease last month took place in ‘Capitals and Large Cities’ with a fall of 4.9 per cent compared to a year ago.
Next came the ‘Mediterranean Coast’ where the average price went down by 4.7 per cent year-on-year and the places located around large cities (‘Metropolitan Areas’) whose residential market showed a decrease of 4.4 per cent compared to February 2014.
Lastly, in small localities, grouped in ‘Rest of Municipalities’, house prices went down by 2.1 per cent compared to the previous year, the same change seen in January.
“The average price for property in Spain started a stabilisation process in 2013, characterised by a slowdown in the rate of average price falls,” explain Tinsa. “If the optimistic predictions of economic and employment growth proffered by different official bodies are fulfilled, the average price of property in Spain could bottom out over the next few months.
“This prediction,” they add, “does not mean that in localised markets with particularly weak demand and significant stock levels, there won’t be further adjustments and that large year-on-year decreases won’t occur.”
Although the rate is slowing, the Spanish house price adjustment continues its downward trend, and is still widening the gap compared to the previous cycle.