Spanish home prices fell 8.3 percent in the last year
18 July 2012
, by Francisco Miñana - Madrid (Bolsamania.com/BMS)http://www.bolsamaniacs.com/2012/07/18/Spanish-home-prices-fell-83-percent785/Home prices in Spain have fallen 8.3% year-on-year during the second quarter of 2012, according to the latest data from the Spanish Ministry of Public Works
This reading marks the biggest decline in home prices since the onset of the crisis
, surpassing the 7.2% y/y decline of the first quarter
The average home price was €1,606.40 per square metre, the lowest since the start of the crisis, and 23.6% below the peak reached in early 2008 before the housing crash.
Used home prices, which includes homes that are more than 2-years old, fell by 8.4%.
Home prices fell year-on-year across all autonomous regions.
The biggest declines were in Andalucía (-11.2%), Cataluña (-11.1%), Madrid (-10.0%), Aragón (-9.1%), and Valencia (-9,0%).
The most moderate price declines were in: Cantabria (-0.7%), País Vasco (-2.5%), Murcia (-5.6%), and Navarra (-5.9%).Opinion:
This public data shows that home prices fell 23.6% from 2008 peak levels
Other estimates from private participants of the housing market (Tinsa, Idealista) show that they have fallen as much as 30%
There are indications that the market bottom may still be a far way off
. It is estimated that prices may fall another 20% due to the Spanish government’s decision to boost the VAT rate from 4% to 10% and the removal of tax incentives for first-time home buyers