Decline in Home Resale Prices Slows For First Time Since Crisis
October 4th, 2013
The average price of a second-hand home stood at 1,762 euros per square metre at the end of the third quarter of the year, maintaining the same value as in the previous three months, and slowing for the first time the continued decline recorded since the beginning of the crisis, according to the latest report prepared by fotocasa.es in conjunction with the IESE business school.
Specifically, this price stabilisation contrasts with the results of the previous quarter (-3.8%), and breaks the chain of 24 consecutive quarters of declines registered in the price of second-hand housing since the crisis erupted in September 2007.
In monthly terms, Diario Sur reported that the price of used homes fell by 9.4% in September compared with the same month of 2012. However, this data presents a moderation of the year-on-year declines of previous months, when they registered decreases of up to 11%.
The report’s house price analysis shows that nine regions registered increases in the price of second-hand housing in the third quarter. Specifically, increases were noted for Valencia (1.3%), the Canary Islands (1.2%), Castilla-La Mancha (1.1%), Cantabria (0.9%), the Balearic Islands (0.6%), Madrid (0.6%), Murcia (0.3%), Aragon (0.3%) and La Rioja (0.3%). In contrast, prices dropped in the other eight regions, with the steepest decline being registered in Extremadura, of 2.5%, and the smallest in Catalonia (-0.2%).
Prices for all types of housing dropped down slightly in the last three months of the year, (by between 0.1% and 0.3%), except for those of the larger properties (of between 150 and 300 square metres) which rose by 0.4%.