Spanish coastal house prices biggest ever drop in August

TINSA has a new Spanish house price report available today.

The accompanying press release summarises their findings:

House prices continued to fall in August

Prices along the Mediterranean Coast have now fallen by an average of 40% from their highest levels. The Major Cities segment is experiencing greater downward pressure on prices.

The General IMIE index recorded a year-on-year decline of 11.6%, slightly higher than the fall recorded in July, ending the month at 1545 points. The cumulative decline in house prices since the market peak in December 2007 is 32.4%.

The breakdown by segment shows that the “Mediterranean Coast” recorded the highest year-on-year fall in August, of 14.7%, followed by “Capitals and Major Cities”, which saw a 13.4% decline in value compared with the same month the year before.

The fall experienced in the “Balearic and Canary Islands” was slightly below the average, at 11.5%. An even smaller decline was recorded by “Metropolitan Areas”, where the year-on-year fall stood at 10.4%, and lastly “Other Municipalities”, with a fall of 8.8%, even lower than the figure recorded in July.

With regards to the cumulative falls by segment since the top of the market, the “Mediterranean Coast” is once again the biggest faller, with a decline of 39.5%; followed by “Capitals and Major Cities” with 35.6%, “Metropolitan Areas” with 31.4%, the “Balearic and Canary Islands” with 30.2% and “Other Municipalities”, which refers to those not included in other categories, with 27.4%.