House prices in Spain continue to trend downwards. Weak demand, massive oversupply of housing, record high unemployment, low consumer confidence, and a struggling economy are among the factors that prevent a full recovery from taking place.
On an annual basis, house prices were down 4.46% in February 2011, according to the valuers TINSA, or 1.92% down on the quarter, after a meagre increase of 0.01% q-o-q to November 2010. When adjusted for inflation, prices actually dropped by 7.77% during the year to February.
* House prices were down by 5.2% in large cities (y-o-y);
* House prices down by 6.7% on the Mediterranean coast;
* House prices down by just 0.8% in the Balearics and Canaries.
The Bank of Spain (BOS), which produces quarterly house price data, said that the average appraised value of houses stood at €1,825.5 per sq. m. in Q4 2010; about 0.36% lower than the previous quarter, and down by 3.53% from the same period last year.
House prices in Spain started to fall in 2008, after a decade-long property boom. Prices have fallen by about 20% from their peak in 2007, according to TINSA.
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