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House prices have risen 9.2% in a year, but pace is slowing

26 Jun 2019
House prices have risen 9.2% in a year, but pace is slowing
Home prices rose again in the first quarter compared to last year, but the 9.2% year-on-year increase was softer than in the previous quarter (9.3%). In quarterly terms, prices soared 3.6%. In total, 43,826 units were sold between January and March, 7.6% more than in the same period of 2018, but less than in the previous three quarters.
The data revealed this Tuesday (June 25, 2019) by the National Statistics Institute (INE) allow us to conclude that buying a home is even more expensive than a year ago, but that the year-on-year rise in prices is slowing down: 12.2 % in the first quarter of 2018, 11.2% in the second quarter of 2018, 8.5% in the third quarter of 2018, 9.3% in the fourth quarter of 2018 and 9.2% in the first quarter of 2019.

Also the number of homes sold is in decline. 45,619 accommodations were sold between April and June 2018, 45,935 between July and September 2018, 46,421 between October and December 2018 and 43,826 between January and March 2019.

"In the first quarter of 2019, 43,826 dwellings were transacted, an increase of 7.6% over the same period of 2018. This was the third consecutive quarter in which there was a slowdown in the number of sales of dwellings, with the one that registered the lowest annual rate of change of the last 4 years, "concludes the INE.

Of the 43,826 homes sold, "existing housing transactions corresponded to 37,436 units, up 7.5% over the first three months of 2018". "Sales of new homes (14.6% of the total) grew 8.4% year-on-year, totaling 6,390 homes," says INE.

Regarding the value of sales, it totaled approximately 6.1 billion euros in the first quarter of 2019, up 12.9% on the same period last year (10.7% in the fourth quarter of 2018). "Of the total amount, 5 billion corresponded to existing housing transactions and 1.1 billion to new housing sales, which represented year-on-year increases of 12.3% and 15.1%, respectively. This was the third consecutive quarter in which the pace of growth in the value of new housing transactions exceeded that of existing housing, "reads the INE website.
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