Average House Prices Up 1.4% in Q1, Say Tinsa
According to the IMIE Local Markets Index data for the first quarter of the year, published by property appraisal company, Tinsa, the average price of finished housing in Spain (new and second hand) increased by 1.4% compared to the same period of 2015, and is the second consecutive quarter of year-on-year increases.
Tinsa highlighted that the number of regions which registered year-on-year growth in their house prices in the first quarter, outnumbered those registering declines for the first time since the crisis began. Leading the recovery of prices in the residential market are Catalonia and Madrid, registering year-on-year advances of +8.2% and +7%, respectively, followed by: the Balearic Islands (+3.8%); Castilla-La Mancha (+3.5%); the Canary Islands (+2.4%); Asturias (+2.2%); La Rioja (+2.2%) and the Basque Country (+0.4%).
In contrast, among the regions registering year-on-year declines, the greatest were those recorded for Aragon and Galicia, with rates of -3.5% and -3.1%, respectively.
La Rioja is the region which has suffered the greatest accumulated decline in prices since the height of the crisis, with an average reduction in prices of -53.1%, followed by Aragon (-51.3%) and Castilla-La Mancha (-51.2%), while the regions registering the lowest accumulated declines are the Balearic Islands (-28.9%), Extremadura (-31.8%) and Galicia (-34.6%).
Tinsa’s quarterly report shows year-on-year price increases for a total of 25 of Spain’s provinces, lead by: Barcelona (+8.9%); Albacete (+7.6%); Madrid (+7%); Lleida (+6.5%); Santa Cruz de Tenerife and Girona(both +5.9%), while a further 12 provinces registered increases above the Spanish national average of +1.4%.
The provinces which registered the greatest year-on-year price declines in the first quarter were Álava (-7.8%), Teruel (-6.7%) and Jaen (-6.3%), while the provinces of Cordoba, Pontevedra, Palencia, Burgos and Zaragoza all registered declines in excess of -3%.
The greatest price declines accumulated since 2007 are those recorded for the provinces of Toledo (-55.1%), Zaragoza (-54.3%) and Guadalajara (-54.1%), while the provinces where average prices have fallen least are Teruel (-27.4%), Cáceres (-27.8%) and the Balearic Islands (-28.9%).
Tinsa also highlighted that the average period of time it takes to sell a home in Spain is 10.5 months. However, this average is higher in the provinces of Cantabria (19 months), Ávila (17.1) and Álava (16.8), while in Ceuta, Melilla, and the provinces of Las Palmas and Madrid the average time it takes to sell a home is less than 7 months.
In the cities of Madrid and Barcelona selling a home takes an average of 5.6 months and 5.9 months, respectively, while among the five biggest Spanish capitals, selling a home in Valencia takes the longest on average, at 13.2 months.
Buying a home in Spain during the boom years required an average financial effort of 8.1 years’ salary, while currently this rate stands at an average of 6 years, with the average percentage of the home financed (loan to value rate) standing at 64.4%. In Zaragoza this average loan to value rate is highest, at 75.8%, while in the Balearic Islands it stands at just 32%. In the province of Barcelona the loan to value rate is 62.6%, close to the national average, while in Madrid the rate rises to 72.7%, in both cases greater than in the previous quarter.