The latest data reinforces the idea that Spanish house prices are now more or less stable, after years of declines.
Figures from Tinsa, a leading appraisal company, and Fotocasa, a property portal, reveal that average national house prices barely changed in January, though prices were up around 3% in big cities and the Spanish islands.
The national average price was up 1.1% in January compared to the same time last year, with increases of 2.9% in the cities, and 3.2% in the Balearics and Canaries (chart above).
Peak-to-present, house prices are down 41% as a national average, 29.1% on the islands, and 48% on the Mediterranean coast.
Helping consolidate the trend towards market stability in the coming months are “the positive outlook for economic growth and the stabilisation of the job market,” say Tinsa. On the other hand the threats to recovery include the “political uncertainty and the potential pressure from Europe to implement fresh spending cuts which could weaken the economy.”
Average resale asking prices fell 0.3% in January compared to last year, though it rose by the same amount compared to December. Peak-to-present, asking prices are down 45% according to Fotocasa data, and by 50% in Murcia, 48% in the Valencian region, 47% in Catalonia, 45% in Madrid, and 43% in Andalusia.
“House prices will continue to continue to evolve very unevenly in 2016,” says Beatriz Toribio, head of research at Fotocasa, commenting on the latest data. “Prices are stable or even recovering in some parts of the country, whilst falling hard in others. That is the consequence of the crisis the sector has been through, which has left us with a two or multi-speed market that is becoming ever more apparent.”
SPI HOUSE PRICE INDEX TRACKER
SPI tracks the seven-most important house price indices in Spain, and the latest data supports a picture of prices stabilising but without much sign of taking off anytime soon (latest data highlighted in yellow).
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