The appraisal of new and used housing in Spain in November accumulated an increase of 4.2% year-on-year and continues to grow at a minimum compared to October at 0.6%, according to data published this Thursday by Tinsa. The appraiser warns that the price of houses remains stable in a context of great demand that places sales at “healthy” levels, despite having fallen 23.1% in September.
In fact, Tinsa warns that the only brake on the active search for housing is the lower granting of mortgages, which contracted almost 30% at the end of the third quarter, although it does not prevent the price from continuing to rise.
Cristina Arias, director of Tinsa’s Research Service, points out that demand continues to be “solvent”, despite gradually reducing. “Housing continues to channel savings and the ratio of mortgages to sales reflects that the moderation in demand is mainly due to the reduction in mortgage credit granted due to the rise in interest rates,” she explains.
Differences by area
By area, the value of housing has increased between 0.5% and 0.8% between September and October in all geographical areas of Spain, except for the islands. In this sense, a “slight and specific” decline of 0.2% in the price has been recorded on the islands. This represents a general maintenance of the slight boost in prices observed since September, as highlighted by Tinsa.
In year-on-year terms, the indicators remain positive, although Tinsa affirms that prices show a slowing path. In this sense, there are great differences between the different areas of geography. The Mediterranean Coast offers greater resistance to the declines in November, as well as the inland municipalities, where a moderately upward evolution has been observed in year-on-year terms since September.
Despite the level of adjustment registered between October and November, the ‘Islands’ group remains the one that has appreciated the most in an interannual rate (with an increase of 7.5%), followed by the ‘Metropolitan Areas’ and ‘Mediterranean Coast’ ‘ (which grows 4.7% in both cases). Lastly, the price in large cities and capitals has risen by 3.5% and 3.3% in the rest of the municipalities.
Variations from maximums
The average price of new and used housing in Spain has appreciated by 39% since the minimum recorded in August 2015, after the financial crisis. This evolution places the value at March 2011 levels, 18.3% below the maximums reached in December 2007.
The ‘Capitals and large cities’ are, along with the ‘Metropolitan areas’, the group where the increase in prices has been most intense since their minimum; 47.1% and 42%, respectively. An evolution that practically doubles that recorded in the smaller towns in the interior of the peninsula (‘Rest of municipalities’), where the increase from its minimum is 23.1%.
The average value on the ‘Mediterranean Coast’ has accumulated a drop of 28.4% compared to the peak of the real estate ‘boom’, closely followed by ‘Rest of municipalities’ (which has dropped 27.8%). In the ‘Capitals and large cities’ the gap is only 13.9%, although it is the ‘Islands’ group that is closest to its maximum levels, 3.6% below that reference.
