The price of vacant housing rose by 3.3% in the second quarter, showing the highest rise since 2019
New housing boosts prices. Where are prices rising the most in Spain?
The price of vacant housing rose by 3.3% in the second quarter at a year-on-year rate, 2.4% higher than in the previous quarter and the highest since the fourth quarter of 2019, before the pandemic arrived.
This is shown by the Housing Price Index (HPI) of the National Statistics Institute (INE) published on 8th of September, 2021. With the upturn in the second quarter, the price of vacant housing now accumulates 29 quarters of year-on-year growth and breaks with the trend towards moderation that began in the first quarter of 2020, with the outbreak of the pandemic crisis.
This is shown by the Housing Price Index (HPI) of the National Statistics Institute (INE) published on 8th of September, 2021. With the upturn in the second quarter, the price of vacant housing now accumulates 29 quarters of year-on-year growth and breaks with the trend towards moderation that began in the first quarter of 2020, with the outbreak of the pandemic crisis.
In that first quarter of 2020, the price of vacant housing rose by 3.2% year-on-year and then moderated in the following quarters until the first quarter of 2021 saw an increase of 0.9%, the lowest year-on-year growth rate in seven years.
New housing boosts prices
By type of housing, the price of second-hand property rose by 2.9% year-on-year in the second quarter of this year, more than two points higher than that recorded in the previous quarter (0.7%) and the highest since the end of 2019.
In the case of new homes, their price soared by 6% year-on-year in the second quarter, almost four points higher than in the previous quarter and its highest rate since the fourth quarter of 2020 (8.2%).
In the case of new homes, their price soared by 6% year-on-year in the second quarter, almost four points higher than in the previous quarter and its highest rate since the fourth quarter of 2020 (8.2%).
Where are prices rising the most?
The annual rate of the HPI in the second quarter of 2021 increased in all autonomous communities. The largest rises were witnessed in the Canary Islands (6.4%), the Balearic Islands (5.7%), Cantabria (5.3%), Murcia (4.4%) and the Valencian Community (4.3%).
Also above the national average, which is 3.3%, were Andalusia (3.6%), Asturia (3.6%) and Galicia (3.5%).
The lowest increases were recorded in Extremadura (1.7%), Madrid (1.9%), La Rioja (2.3%), Castilla-La Mancha (2.4%) and Aragon (2.5%).
In the rest of the Autonomous Regions the HPI was also below the average: Catalonia (3.2%), Navarre (2.6%), the Basque Country (2.6%) and Catilla y León (2.6%).
Also above the national average, which is 3.3%, were Andalusia (3.6%), Asturia (3.6%) and Galicia (3.5%).
The lowest increases were recorded in Extremadura (1.7%), Madrid (1.9%), La Rioja (2.3%), Castilla-La Mancha (2.4%) and Aragon (2.5%).
In the rest of the Autonomous Regions the HPI was also below the average: Catalonia (3.2%), Navarre (2.6%), the Basque Country (2.6%) and Catilla y León (2.6%).
How has it fared compared to the beginning of the year?
If we analyse the most recent evolution of the Spanish real estate market, we can see that the upward trend continues.
Thus, at a quarter-on-quarter rate (second quarter over first one), the price of housing rose by 2.4% between April and June, its highest quarterly rise in three years - specifically since the second quarter of 2018, when the price rose by 2.6%.
However, by housing type, new home prices increased by 1.3% between the first and second quarters of this year, while second-hand home prices rose by 2.7%, their largest quarterly growth in six years – since the second quarter of 2015. In other words, the rise in housing prices has been driven more by resale than by new real estate.
Source:https://www.expansion.com/inmobiliario/mercado/2021/09/08/613862e0e5fdead2438b45a2.html
Thus, at a quarter-on-quarter rate (second quarter over first one), the price of housing rose by 2.4% between April and June, its highest quarterly rise in three years - specifically since the second quarter of 2018, when the price rose by 2.6%.
However, by housing type, new home prices increased by 1.3% between the first and second quarters of this year, while second-hand home prices rose by 2.7%, their largest quarterly growth in six years – since the second quarter of 2015. In other words, the rise in housing prices has been driven more by resale than by new real estate.
Source:https://www.expansion.com/inmobiliario/mercado/2021/09/08/613862e0e5fdead2438b45a2.html
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