Spanish House Prices Register Biggest Increase Since 2007
Housing prices in Spain rose by an average of 3.1% in 2015, compared to the previous year, according to the latest Housing Price Index published by the National Statistics Institute, which represents their second consecutive year-on-year increase following six years of declines, and the highest increase registered since 2007.
After house prices registered growth of 9.8% on average in 2007, when this index was first published, between 2008 and 2013 these prices recorded declines. In 2008 the decline registered was 1.5%, followed by declines of: 6.7% in 2009; 2% in 2010; 7.4% in 2011; 13.7% in 2012 and 10.6% in 2013.
Second hand housing prices rose by an average of 2.9% year-on-year in 2015, registering their highest growth since 2007, while new housing prices increased by an average of 4.2% in 2015, their greatest increase since 2008.
In the fourth quarter of 2015, Spain’s housing prices increased by 4.2% over the same quarter of the previous year – three-tenths lower than the year-on-year increase recorded in the third quarter (+4.5%) – accumulating seven consecutive quarters of positive annual rates for housing prices.
New housing prices rose by an average of 5.8% compared with the fourth quarter of 2014, representing their largest increase registered since the first quarter of 2008, while the average price of second hand housing increased by 4%, half a point lower than the increase registered in the previous quarter. Quarter-on-quarter (fourth quarter over third quarter of 2015), house prices fell by an average of 0.1% after two quarters in positive rates.
In the fourth quarter of 2015, the price of new housing increased by an average of 1.3% over the previous quarter, which is seven tenths more than the increase recorded in the third quarter. Meanwhile, the price of second hand housing experienced a quarter-on-quarter decline of 0.3% after two quarters of positive quarterly rates.
In 2015, all of Spain’s regions plus the autonomous cities of Ceuta and Melilla recorded rises in average house prices. The greatest increases were registered in the Balearic Islands (+5.6%), Madrid (+5%), Ceuta (+4.7%) and Catalonia (+4.1%), while the least significant increases were recorded in La Rioja (+0.1%) and Navarra and the Basque Country (both +0.6%).
In year-on-year terms (fourth quarter of 2015 over same quarter of 2014), most of the regions cut their annual rate. The largest reductions were recorded in Cantabria and Asturias, which dropped by 2.8 and 2.2 points, respectively, to register year-on-year rates of 2% and 1.3%.
Quarter-on-quarter, house prices fell in ten regions plus Ceuta, and rose in seven plus Melilla. The largest decreases compared to the previous quarter were recorded in Asturias (-2.5%) and Cantabria and Galicia(-1.4%). In contrast, the greatest price increases were recorded in La Rioja and the Basque Country (both +0.7%).
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