Government Statistics Show House Prices Still Falling
According to statistics released by the Spanish Ministry of Development last week, home values fell by 2.9% year-on-year in the second quarter of 2014, to a price per square metre of 1,459.3 euros. This is the lowest recorded reduction since 2008, and all indications are that the discounts are coming to an end. The Ministry’s data is in contrast to those published recently by the Property Registrars and the National Statistics Institute, whose reports pointed to the first slight increases in the price of housing in the last seven years.
The Ministry’s statistics suggest that quarter-on-quarter (current price of housing compared to the first quarter of the year) the variation was 0.0%. Specifically, according to their figures, the average value per square metre is just 10 cents cheaper than between January and March, when it stood at 1,459.4 euros.
Thus, according to the Ministry of Development’s official data, at the end of the second quarter, the price of private housing has accumulated an adjustment of 30.6% since their peak prices reached in early 2008, at the beginning of the crisis. The average price per square metre of new housing (up to two years old) stood at 1,523.5 euros, representing a variation of -2.8% year-on-year, while second hand homes (more than two years old) registered a decline of 2.9% year-on-year, bringing the cost per square metre to 1,436.7 euros.