Despite rise in mortgage interest rates he house prices in spain it rose an average of 0.9% during the first quarter, according to Tinsa. Whether because the purchases derive from previous decisions or because of the persistence of high savings rates, the truth is that the statistics confirm the feelings of real estate agents, who are already noticing the drop in the number of sales but price stability. According to the appraisal company, the average price in Spain stood at 1,713 euros per square meter between January and March. The quarterly price variation was 0.9%, with which the interannual rate maintained an increase of 6.3%. In any case, ominous forecasts begin to proliferate and those of Tinsa are paid in that line.
The theoretical annual effort to purchase a home stands at 31.2%, three tenths more than the previous quarter. Accessibility is stressed in large capitals: 47.4% in Barcelona; 44.2% in Madrid and 42% in Malaga. In any case, the averages tend to camouflage disparate supply and demand behaviors according to areas, but the general trend is to reduce the supply of housing and gradually slow down prices, but less than is logical after the rapid increase in the cost of housing. the mortgages. High-priced homes maintain stronger demand than the rest.
The year has started with a general slowdown in the growth of finished housing prices (new and used). According to the IMIE Local Markets statistics published this Tuesday, based on the appraisals carried out by Tinsa, the stabilization trend in prices observed in the first months of the year is confirmed and represents a clear moderation compared to the quarterly increases of 2.2% and the 2.1% registered in the fourth and third quarters of 2022, respectively.
“The volume of home sales continues to normalize, which is returning towards its historical average, below the strong acceleration in activity that was experienced between the second half of 2021 and the first half of 2022, but still at robust levels”, affirmed Cristina Arias, director of the Tinsa Studies Service.
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“For the coming months, the forecast of a slowdown in prices is maintained with a tendency towards stabilization as a result of reduced financing and a moderating demand,” concludes the Tinsa report. Among the indicators that allow confidence in the residential market in Spain to be maintained, Cristina Arias highlights that household and corporate debt is at balanced levels with respect to GDP, that general employment rates are maintained, sustaining the solvency of families , and that doubtful loans associated with home purchases are at low levels and were still declining in the last quarter of 2022.
Cantabria (+12.1% year-on-year), Valencia (+10.1%) and Zaragoza (+9.8%) are the provinces where the price of new and used housing has increased the most in the last year. In quarterly rate, seven capitals register a slight decrease and in another 20 the increase does not reach 1%. The cities of Madrid (+0.3%) and Barcelona (-0.3%) barely moved their prices in the last three months.