Second Hand House Prices Rose by 0.1% in August

The average price of second hand housing in Spain stood at 1,628 euros/m2 in August, and registered a month-on-month increase of 0.1%, according to data published last week by property portal Fotocasa, which again shows that the price of second hand housing is stabilising, leaving behind the large price drops of recent years.

Year-on-year prices fell by 1.1% in August, over the same month of last year, continuing the trend of gentle declines registered in recent months.

Since registering its maximum price of 2,952 euros/m2 in April of 2007, the average price of second hand housing in Spain has accumulated a decline of -44.9% and in fact, a total of 12 of Spain’s regions have recorded declines of over -40% since the peak levels of nine years ago. These are: La Rioja (-57.5%); Castilla-La Mancha (-53.5%); Navarra (-53%); Aragón (-52.6%); Murcia (-50.5%); Catalonia (-48.1%); Valencia (-47%); Asturias (-46.1%); Madrid (-43.3%); Extremadura (-42.4%); Andalucía (-42.2%) and Cantabria (-41.7%).

Eight of Spain’s 17 regions registered increases in second hand house prices in August, the greatest being the increase recorded in Galicia (+0.6%), followed by the Canary and Balearic Islands (both +0.5%), Valencia (+0.4%), Catalonia and the Basque Country (both +0.3%), Andalucía (+0.2%) and La Rioja (+0.1%).

In contrast, the region to register the greatest decline in second hand house prices was Cantabria, where prices fell by -1% in August, followed by Aragón (-0.7%), Castilla y León (-0.6%) and Navarra and Asturias (both -0.4%).

In terms of prices, the Basque Country remains the most expensive region of Spain, with average prices standing at 2,743 euros/m2 in August, followed by Madrid (2,250 euros/m2) and Catalonia (2,006 euros/m2). In contrast, the regions with the most affordable second hand housing prices were Castilla-La Mancha (1,029 euros/m2), Extremadura (1,085 euros/m2) and Murcia (1,138 euros/m2).