Price falls continue to slow down according to Tinsa
After a rash of negative statistics a month or so ago, property market analysts have had their spirits boosted slightly over the last ten days by more optimistic signs, and another bulletin falling into this category is the latest quarterly price report issued by leading valuation firm Tinsa.
According to Tinsa, the drop in market prices for residential property is definitely slowing down. For the third quarter in a row the firm’s general price index showed a year-on-year price fall of under 10%, as the March figure of 6.7% continued the trend towards stability after falls of 9.3% and 8.3% in the last two quarters of 2013. The accumulated loss of value in Spanish residential property since the end of 2007 is now 39.7%, according to Tinsa, and prices have fallen back to a level last seen in the second half of 2003.
In the Comunitat Valenciana the Tinsa index now stands at 1,434€ per square metre, representing a depreciation of 9.7% over the last twelve months and 46.3% since the end of 2007. Of the three provinces Alicante has suffered least, with price falls of 6.1% over the last year and 43% since 2007, while in the provinces of Valencia and Castellón prices have fallen by over 11% since the first quarter of 2013 and by 48.6% and 46.4% since the peaks of late 2007.
As usual, the national average conceals a great deal of regional variation. In Madrid and Castilla-La Mancha the rates of decrease still stand at 12.8% and 11.5% respectively, while at the other end of the scale are Galicia, where prices have fallen by just 2.1% over the last year, Aragón (2.7%) and the Balearics (3.4%).
Since prices hit their peak at the end of 2007 they have fallen by over 45% in Castilla-La Mancha (51.1%), Catalunya (49.5%), Aragón(47.5%), Madrid(47%) and the Comunitat Valenciana (46.3%), and in all regions of Spain the value of property has fallen by at least 28%.
Looking in more detail at provinces, in two of the country’s fifty provinces prices have actually risen over the last year. These exceptions are Huesca (in Aragón) and Cáceres (in Extremadura), although both of these areas have very low activity, whilst over the last twelve months Tinsa reports drastic falls of 15.8% in Albacete, 13.3% in Segovia and 12.8% in Madrid.
Since 2007, meanwhile, prices have dropped by over 50% in Guadalajara (53.3%, bringing prices back down to the level of late 2002), Toledo (53.1%), Zaragoza (51.3%) and Barcelona (50.7%), and Tarragona, Girona, Valencia and Almería are very close to joining this group. In Melilla, Orense, Zamora and Cáceres,( again ,all low volume areas) on the other hand, the accumulated fall has been under 25%.
There is general agreement amongst analysts that prices will continue to fall this year, but these figures seem to back up the general consensus that the rate of the fall is slowing considerably and prices are approaching their lowest point.
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