Price of New Homes fell 6.9% in 2012

According to a report released yesterday by the appraisal company, Tinsa, the price of new housing in Spain fell by 6.9% in 2012, and they believe that houses will continue to get cheaper during 2013.

The report indicates that home prices have declined 33.5% since their peak, although this rate is equivalent to half of the observed asset revaluation, which puts the price of housing at early 2003 levels.

In the provincial capitals, the price of new housing reached 2,212 euros per square metre, making an average building of 90 square metres worth around 199,100 euros.

In the second half of the year, house prices dropped by 3.2%.

El Economista reported that in 2012, house prices fell in all regions, with the largest decreases occurring in Navarra (12.6%), La Rioja (11.6%), Castilla-La Mancha (10.2%), Cantabria (8.8%), Valencia (8.7%), Aragon (8.6%), Extremadura (7.3%), Andalucía (7.2%), Murcia (7.2%) and Castilla y Leon (7%).

Below the national average, the prices in Catalonia dropped 6.6%, followed by Madrid (6.5%), the Balearic Islands (6.5%), Asturias (5.7%), Galicia (5.6%), the Canary Islands (5.2%) and the Basque Country (4.1%).