House Prices Have Fallen 37.4% Since 2007, Says Tinsa

Real estate appraisals, Tinsa, reported last week that the average house price in Spain registered a year-on-year decrease of 10.4% in May, very similar to that of the previous month (-10.5%), and has accumulated a drop of 37.4% since the maximum prices reached in December 2007, before the crisis.

Thus, the fall in house prices remains moderate, compared to the drop of 11.6% registered in February, after the tax benefits for purchasing a home were abolished on 1st January.

Specifically, the provincial capitals and major cities experienced the sharpest cuts in May with the price of their homes registering a drop of 13.3%, year-on-year, followed by metropolitan areas, with a decline of 13.2%, the Mediterranean coast, with a drop of 8.5%, then the remaining municipalities (-7.2%).

Meanwhile, Cinco Dias reported that the Balearic Islands and the Canary Islands, despite the positive figure of the previous month, registering an increase in housing prices of 3.3%, returned a negative result, with a drop of 5%, continuing the trend of recent months of a temporary stabilisation of prices in those markets.

According to the data analysed by Tinsa, the cut in housing prices accumulated since December 2007 reached 43.2% on the Mediterranean coast, 41.9% in the capitals and major cities, 40.3% in metropolitan areas, 31.2% in the rest of the municipalities, and 27.9% in the Balearic and Canary Islands.