Housing boom confounds ‘slow down’ predictions

16 November 2004

MADRID – House prices have risen by 17.1 percent in the third quarter of the year compared with the year before, the Housing Ministry said.

In the same period the year before, homes rose by 16.45 percent across Spain.

The latest figures contradict widespread predictions that the housing market would slow down and prices would fall.

The biggest rise came in Murcia in south-east Spain, where prices increased by 25.39 percent.

However, the lowest gains came in Asturias in the north, where prices only rose by 1.3 percent.

‘Second-hand’ homes rose in price faster than new homes.

Figures showed rises of 22.58 percent and 18.76 percent respectively.

Spanish Housing minister Maria Antonia Trujillo said the rise was “positive” but added that it “could not go on for ever”.

Trujillo said the Socialist government would not intervene in the market but has handed out EUR 182 million to help provide ‘affordable housing’ as prices rise.

[Copyright EFE with Expatica]

Subject: Spanish news