Resale Housing Prices Rose by 0.5% in Q1

Data from the latest house price index prepared by property portal, fotocasa, indicate that the price of second hand homes in Spain registered a rise of 0.5% in the first quarter of the year, placing the average price in March 2016 at 1,627 euros/m2. This is the first increase registered during a first quarter of the year since 2007, when prices registered an increase of 1.6%.

However, this is not the first quarterly increase registered in the portal’s index in recent months, as the quarterly prices registered increases in the second and third quarters of 2015, of 1.1% and 0.7%, respectively.

Year-on-year, second hand housing prices in Spain rose by 0.6% in March, representing the highest annual increase since October 2007, when prices rose by 1.2%. During 2015 there were three months which registered year-on-year increases in second hand house prices – July (0.1%), October (0.1%) and November (0.3%) – but none reached the level of 0.6% registered this March.

Spain house prices reached their historical peak in April 2007, with a value of 2,952 euros/m2. Since then, prices have accumulated a decline of -44.9% on average. The regions which have experienced the greatest declines in housing prices since the maximum levels are: La Rioja, with an accumulated decline of -56.1%; Castilla-La Mancha (-52,5%); Navarre (-52.4%); Aragón (-52%); Murcia (-50.2%); Valencia (-47.6%); Catalonia (-46.6%) and Asturias (-46.1%).

Quarter-on-quarter, compared to the last quarter of 2015, eight regions registered increases in second hand housing prices, the greatest being that registered in the Canary Islands, of +6.3%, followed by: the Balearic Islands (+2.2%); Valencia (+1.4%); Andalucía (+1.2%); Madrid (+1%); Catalonia (+0.9%); Navarre (+0.2%) and Cantabria (+0.1%).

In terms of average prices, the regions topping the ranking in March for most expensive second hand housing prices were the Basque Country (2,736 euros/m2), Madrid (2,225 euros) and Catalonia (2,064 euros), while in contrast, the most affordable regions for second hand housing were Castilla-La Mancha (1,050 euros/m2), Extremadura (1,088 euros) and Murcia (1,143 euros).

Moreover, some 30 of the 50 provinces studied recorded positive quarterly figures, the largest being that registered in Las Palmas (+2.4%), followed by Santa Cruz de Tenerife (+2.9%) and Lleida (+0.4%), while Cáceres is the province which registered the greatest quarterly decline (-6.6%).