House Prices Fell by 9.3% in August

According to the latest Spanish Real Estate Market Index (Imie) prepared by property appraiser, Tinsa, the price of housing in Spain fell by an average of 9.3% in August, compared to the same month of 2012, and represented a cumulative decline in prices of 38.6% since the maximums reached in December 2007.

August’s negative percentage, however, is slightly more moderate than the 9.6% decline registered in July, indicating that housing prices are continuing to ease after the tax benefits for home purchases were abolished on 1st January this year.

The steepest decline during the eighth month of 2013 was registered for the metropolitan areas of major cities, with a price drop of 15.8% year-on-year. Next came the housing segment located in the capitals and major cities, which recorded a decline of 11% compared to August last year.

Below the average rate of decline are the properties in the Mediterranean coastal towns (-8.1%) and the rest of the municipalities (-7.2%).

However, El Mundo reported that, compared to these almost across-the-board declines, the Tinsa index also recorded the first increases in a long time. Specifically, in the Balearic and Canary Islands, where house values rose by 2.3%. In these areas the average values have remained stable since the end of 2012.

Since the maximum prices, homes on the Mediterranean coast are now 44.4% cheaper; in capitals and major cities prices have dropped by 42.7%; in metropolitan areas they have fallen by 42.2%; in the rest of the municipalities by 32.6%, and in the Balearics and Canaries, by 28.6%.