Fall in House Prices Moderates in Second Quarter

The National Statistics Institute reported on Friday that house prices fell by 0.8% in the second quarter of the year compared to the previous quarter, representing the most moderate decline since the fourth quarter of 2010.

Thus, the fall in housing prices has moderated, after the pronounced decline of 6.6% registered between January and March, the biggest quarterly decline recorded since 2007, the year in which the National Statistics Institute began developing this index.

Specifically, Europa Press reported that second-hand home prices decreased by 0.1% compared with the first quarter, while the price of new housing fell by 2.4%.

Year-on-year (second quarter of 2013 over the same quarter of 2012), the price of housing also moderated its decline to 12%, compared with the 14.3% annual decline experienced in the first quarter.

Housing prices have now accumulated 21 consecutive quarters in which they have registered negative annual rates. The prices began to fall in the second quarter of 2008 (-0.3%), and since then the trend has not been reversed.

The House Price Index published by the National Statistics Institute complies with the requirements of Eurostat and complements the report published quarterly by the Ministry of Development. Among its objectives is to serve as a point of comparison between Member States in terms of housing prices.

Article source: Kyero.com

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