House prices continue to fall

Prices fallSpanish property prices have continued to fall during the third quarter according to figures published by the country’s Ministry of Public Works.

According to the figures the average value of homes in Spain fell by 5.5% during Q3. A quarter-on-quarter fall of 1.3 % was also recorded.

Speaking to the Wall Street Journal, Nomura banking analyst Daragh Quinn predicted that the Spanish real estate sector was likely to fall further. He estimates up to 100,000 new homes will be sold in Spain this year, less than half of the 326,000 properties that were bought during 2007, a year that many refer to as “the boom year”.

However, according to Tinsa’s General IMIE Index, house prices throughout Spain fell by an average of 7.4% between September 2010 and September this year. The report also showed that capitals and major cities, along with coastal areas, have suffered most from the decline registering drops in values of 8.9% and 8.2% respectively.