Property price news in Spain

Data issued today by the INE in Spain showed further signs that a property price recovery is on its way.

Spanish property prices past and present

Since 2007 property prices have dropped in Spain on average by 40% and in some regions by even more.

The property collapse in Spain fuelled by an oversupply of property stock, general Spanish, European and worldwide economic pressures and a lack of credit in the sytem has deterred buyers for a number of years. With Spanish Banks announcing lending targets this year and a relaxation of finance in Spain along with an improving economic environment has encouraged buyers of holiday homes and investment to start to look at Spain again.

Property price data

Four regions showed for the first time in a number of years a postive annual growth in quarter 1 of 2014 and all areas showed for the first time a decrease in the level of price reductions.

In general new houses performed better than resales but this was partly skewed by a change in the weightings used by the INE with a larger percentage of overral sales being shifted toward resales in comparision to the base year of 2007.

Spanish mortgage availibilty helps spur growth

With an increase in mortgage applications being published last month and two quarters of growth all be it small on GDP the assumption that house prices would stabilise in Spain during 2014 and show some grwoth during 2015 now seems to be a reality.

Read the full article : Quarter 1 offcial data for Spanish property prices