TINSA has a new Spanish house price report available today.
That headline figure of a 31% decline since December 2007 is an average across the whole of Spain. Worst affected is coastal property with a 37.2% decline. Least affected is inland property with a 25.9% decline since their 2007 peak.
Price drops approaching 40% – more in rare cases where owners are exceptionally motivated to sell – explains a lot about the recent increase in market activity.
The accompanying TINSA press release summarises their findings:
House prices continue to decline year-on-year by around 11%
The Balearic and Canary Islands have shown the sharpest decline, up to 14%, followed by the Capitals and Large Cities, at 11.8%.
The IMIE General index registered a year-on-year decline of 11.2% in July, pushing the index down to 1577 points.
The cumulative decline in house prices since the market peaked in December 2007 is 31%.
Comparing the regions, the Balearic and Canary Islands showed the sharpest year-on-year decline in July, at 14%, closely followed by Capitals and Large Cities, which fell by 11.8% compared to the same month the previous year, and Metropolitan Areas, which again stood at 11.6%. The decline was greater than the market average in all three areas.
On this occasion, both the Mediterranean Coast, with a year-on-year decline of 11%, and Other Municipalities with a fall of 9.1%, were below average.
In terms of the cumulative decline in house prices by region since peak prices, there was a 37.2% fall in July for the Mediterranean Coast; followed by 33.5% for Capitals and Major Cities, 32.1% for Metropolitan Areas, 29.2% for the Balearic and Canary Islands and 25.9% for Other Municipalities, which comprises the remainder.