17 Dec Spain House Prices Register Biggest Increase Since 2007 December 17th, 2015
Spanish house prices rose by 4.5% in the third quarter of the year, over the same period of the previous year, and accumulated six consecutive quarters of year-on-year increases following six years of declines, according to the Housing Price Index published by the National Statistics Institute last Thursday.
According to the Institute’s data, the year-on-year increase in housing prices in the third quarter of the year is the highest rise registered since the last quarter of 2007, when housing prices recorded an increase of 5.7%.
The decline in housing prices began in the second quarter of 2008, when they fell by -0.3%, and they continued to fall until the second quarter of 2014, when they registered their first rise after 24 quarters of negative rates.
With regard to type of housing, the price of new housing rose by 4.3% in the third quarter, compared with the same period of 2014, which is six tenths less than the increase recorded in the second quarter (4.9%).
Meanwhile, the price of second hand homes increased by 4.5% in the third quarter, compared to the previous year, which is seven tenths higher than the figure registered in the second quarter, and the highest increase recorded since the third quarter of 2007, when it reached 7.5%.
Quarter-on-quarter (third quarter over the second quarter of 2015), the price of housing increased by 0.7% after climbing by 4.2% in the second quarter.
New housing prices recorded a quarter-on-quarter rise of 0.6% (compared to a 1.5% rise in the second quarter), while second-hand housing prices increased by 0.7%, compared to an increase of 4.6% in the previous quarter.
In the third quarter of this year, almost all of Spain’s regions recorded year-on-year increases in their housing prices. Asturias and Extremadura recorded the greatest annual rates of increase, rising by 2.6% and 2.4%, to 3.5% and 3.3%, respectively, while the greatest annual rates of decline were registered in the Basque Country and Valencia, which fell by nine tenths and six tenths, to rates of 1% and 2.1%, respectively.