Spanish house price index and October sales

Have prices stabilized in Spain

 

Data issued this week by TINSA one of the biggest valuation companies in Spain showed that in general house prices continue to fall in Spain but at a slower pace than in previuos years.

In a few pockets, which include the Islands both Canaries and the Balearics, the slow down in the decline is pronounced suggesting in these areas that we are about to enter a era of stabilization and possibly in 2014 increases in the average price per square meter. This data is backed up by the increase in the purchase of Spanish property in both of those geographical areas.

In the Coastal areas where prices rose at their quickest level in the boom times average pirces per square meter have now dropped back below 2002 levels suggesting again that a period of price stability and increased sales could be on there way.

Property sales in Spain

In general for sellers in Spain the news on number of house sales relating to dwellings remains in the doldrums. For potential buyers in Spain this may be seen as a positive as it means it remains very much a buyers market. Lawyers in Spain and agents report that it is still the case that offers well below asking prices are being accepted by sellers and the data suggests this trend will continue.

Overall property transfers are up 

Whilst it may appear on the surface good news that overall property transfers in Spain were up month on month this is because the amount of properties being transferred under "other titles" is increasing each month. In the section other titles sits the transfer of property ownership to Banks as they reach their court action conclusion.

The increase in this area is bad news all round as any sustained growth on prices or house sales will have to be supported by Spanish mortgage lending. Whilst Spanish Banks continue to have high default ratios it is difficult to see them changing their current stance, where tight criterias, and high pricing have depressed the lending market considerably.

Read the full article:  Property sales and house prices in Spain