House prices fall by 30% since the pick in 2007
Friday, June 29, 2012 @ 2:12 PM
We are currently witnessing the sharpest fall in Spanish house prices on record. According to the property prices index of leading Spanish company TINSA, house prices fell by 11.1% in 2012 May compared with 2011 May 2011, one point less than their April fall of 12.5%.
Now that the data for May is in, it’s clear that the fall in house prices since their 2007 high has increased by four tenths, to stand at 30.2%.
About what is going on in the first quarter, according to the National Institute of Statistics, average property prices in the first quarter of 2012 has fallen by 12.6% compared with the same period in 2011.
Large cities and provincial capitals had resisted the house price crash until now. But in May the trend caught up with them and their house prices fell by 13.3%. Worst affected are coastal areas (-14.1%)
Broken down by area, the cumulative cuts to house prices are most severe on the Mediterranean coast, where 37.9% has been wiped off house prices, and in the capitals and major cities, which have seen a 32.9% drop. The average fall coincides with the fall in metropolitan areas, at 31.2%; what the appraiser referred to as ‘other municipalities,’ saw a 25.9% reduction, and the Balearic and Canary Islands lost a combined 24.1%.