House Prices fell by 13.7% in 2012
March 19th, 2013
According to the Housing Price Index published by the National Statistics Institute on Friday, the price of private homes in Spain fell an average of 13.7% in 2012 compared with the previous year, thus registering its fifth consecutive annual decline, and its biggest since the outbreak of the crisis.
During the last five years, the price of private housing has experienced yearly declines: of 1.5% in 2008, 6.7% in 2009, 2% in 2010, 7.4% in 2011 and 13.7% in 2012. Only in 2007, when the index first started, did the price of private housing experience a positive rate, of +9.8%.
With regard to types of housing, 2012 registered record falls in both new and used housing. The average price of new homes dropped by 12.3% in 2012, accumulating four years of negative figures, with last year’s result being the biggest decline to date. In the case of second-hand housing, the price fell by 14.8% in 2012, its biggest decline since 2008, and its fifth consecutive annual decline.
In the fourth quarter of 2012, the price of private housing fell by 12.8% over the same quarter of 2011, moderating by almost two and a half points the year-on-year decline experienced in the third quarter (-15.2%).
Quarter-on-quarter (the fourth quarter of 2012 over the third quarter), the price of private housing fell by 1.4%, its smallest decline since the second quarter of 2011. In the last three quarters, house prices experienced negative quarterly rates of between 3% and 5%. Since the third quarter of 2010, the price of housing has registered negative quarterly rates.
The price of new homes fell by 1.1% in the fourth quarter of 2012, quarter-on-quarter, its smallest decline since the fourth quarter of 2010. Meanwhile, the price of used homes experienced a quarterly decline of 1.6%, its slowest decline since the second quarter of 2011.
All regions recorded average negative rates in housing prices in 2012. The regions that showed the sharpest falls in prices were Catalonia (-15.8%), Madrid (-15.3%) and the Basque Country (-15.1%), while the lowest declines were registered for Murcia (-11.2%) and Extremadura (-8.2%).
In quarterly values, the price of private housing fell in 13 regions and rose in four. The largest decreases were registered in Murcia (-3.5%), Valencia (-2.2%) and Madrid (-1.9%), while quarterly increases in prices were registered for the Canaries (+0.3%), Asturias (+0.4%), Galicia (+0.5%) and Cantabria (+0.7%).
The Housing Price Index published by the National Statistics Institute is consistent with the requirements of Eurostat and supplements that published quarterly by the Ministry of Development. Among its goals is to serve as a point of comparison between Member States in terms of housing prices.