The appetite to buy is still very high and that keeps prices from falling. On the contrary, they continue to rise, although they do so with less intensity than in previous quarters
- Real Estate Special.
The low supply does not augur a new puncture
The house prices in Spain they continue to accept the impact of the coronavirus and showed in the third quarter that they continue on the path of moderation. These prices rose 1.7% in the third quarter of the year compared to the same period of 2019, the smallest increase recorded since the first three months of 2015, according to the data published this Thursday on National Institute of Statistics (OTHER).
The pandemic has accelerated the moderation process that the home buying market had entered for several quarters. However, the appetite to buy a house has been very high as a result of the first lockdown and that keeps prices from falling. On the contrary, they continue to rise, although they do so with less intensity than in previous quarters.
The INE figures also show a differentiation that is also becoming clear in recent months and is the progress of new construction compared to second hand. New houses became more expensive by 7.5% between July and September, or in other words, they did not register as high a rise since the first quarter of 2019. Meanwhile, the price of second-hand homes increased by 0.8%, the lowest rate in six years.
Compared to the previous quarter, prices increased 1.1%, 4.7% in used housing and 0.6% in new construction.
By communities, the majority registered increases in the third quarter of the year. The highest rates were in the Balearic Islands, the Basque Country and the Canary Islands, with increases of 3.2%, 2.1% and 1.8%, respectively.
For its part, the price of housing decreased compared to the previous quarter in Extremadura (-1%), La Rioja (-0.7%), Principado de Asturias (-0.2%) and Castilla y LeÃ³n (-0, 2%).