The recently published Tinsa IMIE General and Large Markets Index for January 2015, indicates that the average price of new and resale housing stood at 2.7% below the level of January 2014. The year-on-year decline of less than 3% is the first one registered on the General Index since June 2008.
The data confirms that the residential housing market is beginning to stabilise. The property market in Spain has seen some considerable consolidation during 2013 when the average price of property in Spain dropped by some 9.2%. A vast improvement was seen in 2014 when the decline in house prices consolidated to around 3%. Tinsa reports that property prices in Spain have declined by 41.6% since the property price crash in 2007.
The continued consolidation of Spanish property prices will depend on economic growth and job creation. If these economic variables perform positively, property prices in Spain are expected to stabilise considerably, even to the point where Spanish property sees a 0% decline in price in the short-term.
Only the "Balearics and Canary Islands" registered positive price growth in January, with an increase of 3.8% year-on-year. The greatest year-on-year decline registered in January was seen in the towns of the "Mediterranean Coast" which saw a decline of 5.2%. The "Capitals and Major Cities" fell by 4.3% compared with the previous year. The "Metropolitan Areas" (towns around the big cities) demonstrated the second best yoy result, after the Islands which showed a 1.7% decline. In the "Rest of the municipalities", average prices dropped by 2.1% when compared with the previous year.
According to Tinsa, the "Mediterranean coast" has seen the greatest accumulated adjustment since 2007, with a decline in property prices of 48.6%. This is followed by the "Capitals and Major Cities" where a reduction in prices of 45.7% has been noted, and the "Metropolitan Areas", where prices have fallen by 43.9%. The Spanish average since 2007 was 41.6%.
The "Balearics and Canary Islands" have accumulated the smallest decline of 31.3% since 2007, followed by the "Rest of the Municipalities", where prices have fallen by an average of 35.9%.
Filed under: http://www.theleader.info/article/46395/
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