House Prices Fell by 7.2% in November Year-on-Year

apartmentsThe average house price registered a decline of 7.2% in November, compared with a drop of 8.5% the previous month, according to real estate valuation and appraisal company, Tinsa, in their November IMIE Index. Since the peak of the housing boom in December 2007, the cumulative decline has improved slightly, to 38.5%.

Thus, the decline in the price of housing continues to moderate after the tax benefits for home purchases were abolished from 1st January.

A pioneering initiative launched by Tinsa in 2008, the IMIE index, is an index of residential house prices in Spain. Its geographical segmentation is governed by market criteria. Based on these guidelines, Tinsa has subdivided Spain into five major categories that represent the segments of the residential property market: Capitals and Major Cities with a population of 50,000 or more, Metropolitan Areas, the Mediterranean Coast, the Balearic and Canary Islands, and Other Municipalities.

By segments, ABC News reported that the Capitals and Major Cities experienced the sharpest cut in November, with a 7.9% decline in the price of their homes year-on-year, followed by the Metropolitan Areas and Other Municipalities both with declines of 7.8%, year-on-year.

Meanwhile, the municipalities of the Mediterranean coast recorded a decrease of 7.5% year-on-year, while the lowest decrease compared to November last year was registered for the Balearic and Canary Islands, which have maintained a stable trend since mid-2012, with a fall of 0.9%.

According to Tinsa’s data, the cumulative price declines, since the peak of December 2007, reached 45.4% on the Mediterranean coast in November, 42.2% in the Capitals and Major Cities, 41.9% in the Metropolitan Areas, 33% in the Other Municipalities and 27.3% in the Balearic and Canary Islands.