Annual property prices register their most moderate drop since 2008
While demand for property in Spain has been rising, it is interesting to know that annual house prices are falling.
But they might not do for much longer, as September registered the smallest decline in annual property prices since 2008.
Last month, average house prices in Spain were 0.4% less expensive than they were in September 2014. Each year since March 2008, when the annual drop registered 0.3%, the year-upon-year difference has been much greater.
Prices on the Mediterranean coast were reduced the most, at -3.1%, but on the Islands (+0.7%) and other municipalities (+0.6%) they either remained the same or went up slightly. In Spain’s metropolitan areas, prices fell 0.6% and in the capital and big cities, they dropped by 0.4%.
It is apparent that property prices are veering towards stabilization after years of continual decent.
Since house prices reached their maximum in 2008, some areas have seen them drop by as much as 49%.
The worst-affected areas for the fall in house prices has been the Mediterranean coast (-48.9%), followed by Madrid and the large cities (-45.1%) and metropolitan areas (-44.4%).
The least-affected areas have been the Balearic and Canary Islands (-31.6%) and the rest of municipalities (-37.8%).
When looking at the annual variation between September 2014 and 2015, the rest of municipalities have seen the greatest drop in prices, at -3.9%. This is in comparison to the Mediterranean coast where they have gone up 1.2% over the course of the last 9 months. Madrid and other large cities have also experienced an increase in house prices but only by 0.2%.