The price of house went up again during third quarter of year and it did it hard. The increase between months of July and September was 6.7%, almost two points more than previous quarter, according to data released today by National Institute of Statistics (INE). The rise of period was highest annual growth rate for a decade, specifically since third quarter of 2007, when free housing increased by 9.2%.
It was also rise experienced by used housing, which recorded an increase of 6.7%, almost one point more than in previous quarter and annual rate higher from 2007. On or hand, new houses rose by 6.5%, more than two points higher than increase of period between April and June.
With this summer push, house has been increased in Spain by 6.2% until September. In this period type of property that increased its prices was new construction (8%), compared to rise of 6% of houses of second hand.
The data show that buyer returns to have confidence in real estate market and "shows that normalization of market was already a reality a few months ago," says Fernando Encinar, head of studies of Idealista. "The pace of price growth in third quarter of year intensifies as a result of improvement of economy and employment and confirms that recovery of housing market is consolidated," explains Beatriz Toribio, director of studies at Fotocasa.
Prices rise at an unknown rate in recent years, due to increased interest on part of demand, although y are still far from peaks reached in boom years. "Despite bulky growths that reflect different statistics, and are much more evident in community of Madrid, Catalonia and Balearic Islands, prices are still 41.3% below maximum reached in 2007", according to Photocasa. The portal believes that price hike will intensify during 2018.
Only in se three autonomous Communities, Madrid (with an increase of 12.3% in third quarter), Catalonia (10%) and Balearic Islands (9.1%), prices rose above national average. However, in majority of regions, increases were recorded in ir annual rate in third quarter of 2017, especially in Balearic Islands, Murcia and Comunidad de Madrid, of 1.7, 1.5 and 1.4 points, respectively.
On contrary, only descents of annual variation corresponded to Castilla-La Mancha, six-tenths; Navarra, five; Extremadura and La Rioja, four tenths each. If you analyze variation from one quarter to or, were Balearic, Catalonia and Madrid regions that recorded largest increases, 5%, 2.6% and 2.5%, respectively. "We observed with optimism that no autonomous community recorded lower prices than previous quarter, although two-speed process remains very clear: only Madrid, Catalonia and Balearic Islands have growths higher than average," says Encinar. For its part, Castilla-La Mancha, la Rioja and Castilla y León were only communities with negative quarterly variations of 0.4%, 0.3% and 0.1% each.Brake in Catalonia
In idealist, y emphasize that it will be "interesting to analyze evolution of price in Catalonia in upcoming official statistics after political crisis". Some tracks give m statistic publishing today Tinsa concerning month of November. The average price of Viviendaerminada recorded in November a rise of 4% compared to same month of 2016, while in Catalonia its evolution has experienced "a brake", as a result of political situation and awaiting elections of December 21 , according to Tinsa appraiser. The Balearic Islands and Canary Islands and area of capital and large cities stand out as segments with best evolution of average price in last year, with increases in November of 6.8% in interannual rate and 5.9%, respectively.
Below national average, smaller towns show in November a revaluation of 2.6% compared to same month of previous year, followed by metropolitan areas, with a 1.3% increase, and Mediterranean coast, with one of 1.1%.