The Pressio of New and Second-Hand Housing INCREASED 5% During the Quarter of This Year, Compared to Prepio Marked Between July Yuli Mbre 2022. In this Quarter The Pressio of Housing Reached 1,749 EUROS/ m2, at the same level than in the middle of the previous year.
Despite the fact that the rate hike cycle has caused a marked decrease in both the number of sales transactions carried out and mortgages signed, housing continues to become more expensive, with its price standing 1.4% above that recorded in the second quarter of the year.
The data offered by the appraisal company Tinsa also indicates that the Balearic Islands continue to set highs. In this second quarter with the highest figures in its history, the community has exceeded the price of the previous quarter by 3.7% and is 8.4% above the figures from a year ago.
20% below boom prices
At the end of the third quarter, housing was 19.1% cheaper than the maximum reached in the 2007-2008 period, at the height of the sector’s “boom”, and it has appreciated 37% since the lows recorded in the financial crisis .
By autonomous community, housing became more expensive in all of them and with increases above the average were Navarra (9.1%); Balearic Islands (8.4%); La Rioja (8.3%); Castilla-La Mancha (8.2%); Andalusia (7.3%); Valencian Community (7%); Aragon (6.7%); Canary Islands (5.9%) and Madrid (5.7%).
The Community of Madrid is the region that is closest to the “boom” values: 8.5% below and up to eight regions are less than 20% below their maximum values.
At the provincial level, the most expensive are Madrid (2,988 euros/m2), the Balearic Islands (2,828 euros) and Barcelona (2,470 euros). The most intense price increase during the last year occurred in Córdoba, Guadalajara and Castellón, all above 10%.
By capital, Palma de Mallorca exceeded the maximum price of the previous cycle for the first time, 1.5% above, and Madrid and Malaga were close.
Among the large markets, in the city of Madrid it increased by 5.7% and in Barcelona by 2%. The most expensive capitals are San Sebastián (4,165 euros/m2); Madrid (3,744 euros/m2) and Barcelona (3,665 euros/m2).
More than a third of the income in the mortgage payment
The average annual theoretical effort stood at 33.3% in the second quarter of the year (latest data available), just over a third of the income available for the payment of the first year of a new mortgage.
However, several provinces exceeded the level of effort that is considered reasonable (35%): Balearic Islands (60.1%), Málaga (48.7%) and Madrid (41.6%).
What explains price resistance
Among the factors that explain the resistance that prices are showing, Tinsa highlights that housing continues to channel savings and that, although monetary policy is reducing the mortgage credit granted, there is no collapse in demand.
The appraiser expects that residential demand will continue to moderate gradually towards the historical average, which, together with a limited housing supply, will keep prices in the stabilization environment for the remainder of the year.
Despite the rate increase, he believes that the restoration of household purchasing power in the face of inflation and the good position of the Spanish residential market will prevent demand from collapsing as long as employment resists.
