6 Feb. () –
The average price of new and used housing increased by 0.3% in January compared to the previous month and moderated its year-on-year growth to 6.9%, its lowest rate since March 2022, according to Tinsa’s IMIE index.
“The latest inflation and GDP data have improved the macroeconomic outlook and suggest a moderation in interest rate hikes by the European Central Bank as the year progresses. Even so, the cost of mortgages is expected to continue increasing in 2023”, says Cristina Arias, director of the Tinsa Studies Service.
As a result, Arias stressed that the prospects for residential demand “reducing without collapsing and a tendency towards price stabilization” remain.
All the areas analyzed in the Tinsa report presented year-on-year price increases at the start of 2023. The greatest rise was recorded by the metropolitan areas, whose homes have become more expensive by 8.2% compared to January 2022.
They are followed by the capitals and large cities, with a price rise of 7.3% year-on-year; the inland and Atlantic coast towns that make up the ‘rest of municipalities’ group (+7.1%); the Mediterranean coast (+5.1%), and the islands (+2.1%).
In monthly terms (January 2023 over December 2022), house prices rose 0.3%. Only the islands cut the price compared to December (-1%), while the capitals and large cities experienced no variation.
The rest of the areas analyzed increased prices compared to December 2022, especially the metropolitan areas (+0.9%), followed by the Mediterranean coast (+0.3%) and the group of other municipalities (+0.2% ).
THE PRICE OF HOUSING DROP BY 20.9% FROM THE HIGHS OF 2007
According to the appraisals carried out by Tinsa, the average value of new and used housing reached its maximum in December 2007, in full real estate ‘boom’. Since then, the price of has reduced by 20.9%.
In the capitals and large cities, the drop in prices since the end of 2007 is 16.5%, while in the island territories, which reached their maximum in February 2008, the cumulative drop since then has reached 11.1%.
At the other extreme, the Mediterranean coast, which suffered a profound adjustment during the crisis, maintains its prices 30.8% below the maximum it set in February 2008. The smaller towns in the interior and Atlantic coast, which started their recovery later, they have lowered their prices by 28.8% from their maximum value.