The price of new and used housing in Spain increased by 13.7% year-on-year in October, five tenths lower than in September. In the last month, it advanced by 0.9%, according to the Tinsa index.
The price of new and used housing in Spain rose by 13.7% year-on-year in October, five tenths lower than in September, and advanced by 0.9% in the last month. The data comes from the Tinsa IMIE General and Large Markets index, published this Friday, and the information has been provided by pressdigital.es.
With this evolution, the value of housing is 8.2 points above inflation and 3.5% above the peaks of the 2007 real estate bubble in nominal terms. Adjusted for inflation accumulated since then, prices remain 31.6% below those levels.
“In October, residential prices have continued to consolidate their gradual slowdown, although they continue to register strong year-on-year rates in all areas, above inflation and exceeding the 9% nominal year-on-year threshold designated in the European Commission's macroeconomic imbalance procedure,” pointed out Cristina Arias, Head of Research at Tinsa.
By area, the Mediterranean coast leads the year-on-year advance with 16.7%, followed by metropolitan areas (15.6%), capitals and large cities (13.3%), the islands (13.2%), and the rest of the municipalities (10.3%).
In real terms, the year-on-year increase ranges between 5.2% and 11.3%. On a monthly basis, the islands recorded the smallest nominal increase (0.3%) and the capitals and large cities the largest (1.4%).
Adjusted for inflation, the most marked slowdowns occur in the island territory and metropolitan areas. In capitals and large cities, however, growth remains after the moderations of August and September.
According to Tinsa's head of studies, inflationary pressures on the purchasing power of wages persist, although the resilience of employment and a still high savings rate support household consumption.
“In this context, residential sales continue to moderate in the face of rising prices, supply restrictions, increasing interest rates, and greater purchasing effort. Despite this, they maintain a volume above the historical average, consistent with the population increase experienced in recent years,” stated Arias.
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