Spanish house prices are now rising at a rate that would suggest the crisis is history, if the latest data from the Property Register is to be believed.
Average national house prices rose 6.6% over twelve months to the end of September, according to the house price index put together by the Spanish Registrars’ Association, using the Case Shiller methodology.
That’s the biggest increase in the average house prices since September 2007, when the Spanish property boom had not yet turned to bust.
“The rate of growth in recent quarter continues to lessen the cumulative decline in prices since the 2007 peak, placing it now at 28.%,” explain the registrars.
However, these figures are somewhat at odds with other sources of house price data, for example from the notaries, which had average house prices falling by 3.4% in August. The house price index from the Registrars is by far the most optimistic of all those included in the SPI House Price Index Tracker (see graph above).
It is also hard to believe that average national house prices are rising in a country with 1.2 million homes on the market, the equivalent of 3.75 years of supply.
The registrars also reveal there were 92,786 home sales inscribed in the Property Register in Q3, the highest level in the last ten quarters, and a 16.6% increase on the same period last year.
Neil says:
Someone in Spain it trying the old spin trick,me thinks!
David says:
Who can trust stats in Spain when even the article states the rise in prices is ‘at odds with other sources of house price data’ mentioning a fall in August?
Also, the article mentions ‘1.2 million homes on the market, the equivalent of 3.75 years supply’ when recently it was said on here that R R Acuna Associates (independent) say there are 1.6 million homes on the market equating to ’10 years supply’ and that’s before the next batch of re-sales hit the market ie those who’ve waited years to try the market.
As for the ‘crisis is history’, well we’ve heard that no end of times in the last 5-6 years.
David says:
Trying to get my head around the difference in numbers of properties still for sale in Spain as shown above from 2 sources. A difference of 400,000 properties, doesn’t sound too bad until you do the maths.
Just assuming the average price of a property in Spain is a mere £200,000 multiplied by 400,000 and that seems to equate to £800 Billion pounds worth of property difference on the above discrepancy.
If the Acuna figure of 1.6 million homes for sale is true that comes to a trifling £3.2 Trillion pounds which shows how Spain’s property market is well in the mire and for many years to come it would seem. Unless my sums are wrong of course.