Imogen Calderwood
HOUSE prices have seen their first quarterly increase since 2008, according to the latest figures.
Prices rose 0.5% overall for the last quarter of 2014, according to figures released by the Public Works Ministry, thanks to a surge in demand for existing homes.
Sales of existing homes now represent just below two-thirds of sales.
The value of existing homes grew 0.2% from the previous quarter, but the price of new homes fell by 0.1%.
The ministry added that the decline in prices that began in 2008 and reached 9.8% in 2012 had ‘practically come to an end’.
The statistics may say this, but realistically, what chance has a person got of increasing the price of their property beyond its original value when the market has dropped every year since 2008? Prices may be increasing as of now, but they are only increasing after a 20-30%+ drop since 2008. Doesn’t sound so great now, does it? Welcome as this news is, the 9.8% figure quoted is pure fiction, and that’s not even taking into account the 10% purchase costs either.
Actually why should that increase be the correct figure? It depends on which report is read, on Kyero they mainly differ with each other. For instance IMIE published by Tinsa say house prices fell 4.5% at end of 2014, and Idealista say they fell in January 2015.
I think there are so many reports/graphs etc plus the usual ones that agents want you to hear, the real truth will be down to whether you can sell your property which has been for sale for the last 5 years or so, but comes with a downside if converting back to Sterling now.
I do not believe that prices are rising in fact I would say they are still falling. A repossessed house near my place in Spain has just sold for €73,000 but it was bought for €240,000 in 2005 – that is one hell of a drop in price. The banks are currently flogging off all their housing stock and this is flooding the market even more so it is hard to imagine how prices will rise in the foreseeable future. There are thousands of unsold properties in Spain and it will take years to offload them.