The house recorded in 2017 biggest price increase since before puncture of housing bubble. As INE has published today, housing rose an average of 6.2% last year, highest average annual rate since 2007. In addition, it was becoming more and more expensive as year progressed. Thus, in first three months of 2017, it rose by 5.3% compared to same period of 2016, while in last quarter accelerated rate of rise to 7.2%, also liveliest rate since third quarter of 2007, just before explosion of brick. Despite this, real prices are still below levels reached in third quarter of 2007.
The predicted "soft landing" of real estate fervor when crisis loomed was actually a plummet. Housing prices went from an average annual rise of 9.8% in 2007 to a drop of 1.5% following year. For quarters, collapse is more graphically seen: prices rose 9.2% in third quarter of 2007, 5.7% in fourth, 2.8% in first of 2008 and already fell 0.3% in second. It was first of 24 quarters followed by falls, many of m double-digit. It was only in second quarter of 2014 that y returned to positive ground.
Although pace was falling to lead, 2007 ended with an average rise in housing price of 9.8%, to record declines from following year and until 2014. Since n, it chains positive rates, but none as strong as that of 2017, of 6.2%, largest since 2007. By type of housing, second-hand, which accounts for about 80% of sales was increased 6.3% — again, highest rate for 10 years — while new rose by 5.9%, six tenths less than last year.
In addition, in recent months, price of housing has esprintado, and marks an upward trajectory since mid-2016. Thus, in last quarter of 2017, price rose 7.2% over same quarter of previous year. We did not see a higher rate since 9.2% in third quarter of 2007. The year began with a more moderate growth rate of 5.3%.
In this case, new housing price rose 7.4% in last stretch of 2017, two-tenths more than second-hand. In case of new homes, it is biggest rise in a quarter since second of 2016, while for used ones, again it assumes highest rate of increase since third quarter of 2007.
Despite recent rises — 15 quarters followed by interannual rises — real prices have not yet reached maximum levels, recorded in third quarter of 2007. The housing price index, based on 2015, was n 151.7 points, while at end of 2017 it was at 113.4 points. That is to say, a house that in 2015 cost 100,000 euros, it would have cost 151,719 euros in third quarter of 2007 and 113,457 on December 31, 2017. I mean, 25% less than a decade ago.Prices by communities
Although price of housing rose in all autonomous Communities in 2017, region where houses were most expensive was Madrid, ahead of Catalonia. On average, price of houses rose 11.5% in Madrid, by 9.6% in Catalonia and 8% in Balearic Islands. On or side, where less less went up was in Extremadura (0.4%), Castilla-La Mancha (0.7%) and Asturias (1.1%).
History repeats itself compared to last quarter of 2017 with last of 2016. In se terms, house was more expensive in Madrid in 11.9%, for 10.2% in Catalonia and 9.8% in Balearic Islands. Extremadura (0.2%), Castilla-La Mancha (0.4%) and Murcia (1.9%) register lowest rates.