The average price of new and used housing rose by 0.5% in October compared with the previous month, bringing the year-on-year change to 4.3%, compared with 4.9% in September and 5.3% in August. This is the result of the Tinsa IMIE General and Large Markets statistics for the month of October, which reveals that this evolution confirms the trend towards the stabilisation of residential prices that began at the end of 2022.
The General Index is currently at levels similar to those of April 2011, 18.7% below the peak reached in December 2007.
The average value of housing increased in October by between 0.4% and 0.6% per month in all the groups analysed. "This represents a slight acceleration in prices in all areas, with the exception of the island territory which, after registering a strong impulse in September, returned to more moderate levels of variation", explains Cristina Arias, director of the Tinsa Research Department. At the top of the monthly variation band were the 'Capitals and Large Cities' and the smaller towns in the interior of the peninsula, grouped in 'Rest of municipalities', with an increase of 0.6% in both cases.
In year-on-year terms, 'Islas' remains the group where housing prices have risen the most compared to the same month last year: 7.7%. The continued growth of prices in this market since the beginning of 2023 has moderated in October, although it is still too early to speak of a change in trend.
Along with the island territories, the year-on-year rate of change in the price of new and used housing was also higher than the national average in the 'Metropolitan Areas' (+5.3 %) and on the 'Mediterranean Coast' (+4.5 %).
In this context of moderation, residential demand continues at healthy levels. "The impact of inflation on household savings and the rise in interest rates reduces the granting of mortgages and moderates demand with respect to 2022, but cumulative sales and purchases remain 13% above 2019 levels," says Arias.
The director of Tinsa's Research Department stresses that the maintenance of employment is sustaining the solvency of households, which often choose to repay a portion of their mortgage early to reduce the financial burden. "Consumer confidence is decreasing, but remains at higher levels than in September last year," she says.