Spanish house prices are rising at the fastest rate since the tail end of the boom, reveals the latest official House Price Index published by the National Institute of Statistics (INE), based on data from the Property Register.

Average house prices were up 4.5% over twelve months to the end of September (chart above, highlighted), whilst the quarterly increase (Q3) was 0.7% over three months. New house prices were up 4.3%, a fraction lower than the annualised increase in Q2 (4.9%). Resales were up 4.5%, compared to 3.8% the previous quarter.

The annualised index has now risen for six consecutive quarters, suggesting a sustained recovery, and not just a temporary blip. However, experts warn the recovery could have its ups and downs. “The big drops in house prices are over,” says Beatriz Toribio, head of research at the Spanish property portal Fotocasa.es, quoted in the Spanish press. “That doesn’t mean to say they have bottomed out. In the coming months we will see swings up and down inherent in the normalisation that’s taking place in the sector. And it will become even more evident that the real estate sector is recovering at two speeds, with sales and prices rising in some areas, whilst continuing down in others for some time to come.”

REGIONAL HOUSE PRICE CHANGES

House prices rose the most in the Balearics, up 8.4%, followed by Madrid (+6.9%) and Catalonia (+6.1%). The following table shows the annualised percentage house price change in each autonomous region for Q2 and Q3, ranked in descending order. House prices rose in every regio, according to the INE.

Rising prices are most evident in Barcelona and Madrid, where house prices have been rising for months in most districts, whilst prices are still falling by 5% in some areas of Extremadura and Castile La Mancha.

+ House Price Index press release from the INE (in English)