Spanish house prices return to 2004 levels

TINSA has a new Spanish house price report available today. You can download it here.

The accompanying TINSA press release summarises this report as:

House prices in Spain continue to reflect the macroeconomic decline

The General IMIE Index, an indicator created by Tinsa to analyse the evolution of house prices in the Spanish market, increased its year-on-year decline in February, falling by 9.5% to 1664 points, returning to the levels of 2004.

The cumulative decline from the top of the market in December 2007 increased to exactly 27.1%. The deterioration of the macroeconomic environment with significant job losses, together with an increase in the spread on mortgage rates, are offsetting the positive effect of reinstated tax breaks on house purchases.

With regards to the performance of the different market segments, “Capitals and Major Cities” once again recorded the severest decline in February of 11.5%, followed by “Metropolitan Areas” with a fall of 10.3%, compared with the same month the year before. In both cases the decline was greater than the market average.

With a similar level to the General Index, the municipalities of the “Mediterranean Coast” segment declined by 9.5% year-on-year.

The “Balearic and Canary Islands” were below the average with a year-on-year fall of 8.8%, while “Other Municipalities”, which includes those not included in other segments, declined by 6.5%, completing the series.

In relation to the overall decline from the peak of the market, the “Mediterranean Coast ” showed a fall of 34.1% to February; followed by “Capitals and Major Cities” with 29.7%, “Metropolitan Areas” with 28.9%, the “Balearic and Canary Islands” with 24.7% and “Other Municipalities”, which refers to those not included in other categories, with 21.5%.