Decline in Spain’s House Prices Biggest in the Eurozone

The price of housing in Spain experienced a drop of 10.6% in the second quarter, year-on-year, the highest amongst the countries of the eurozone, according to data released last week by Eurostat. However, this decline represents a slowdown compared with the year-on-year fall of 12.8% recorded in the first three months of 2013.

Data from the EU statistics office shows a fall of 0.8% in the house prices in Spain, compared to the first quarter of the year, when they fell by 5.1%, behind only the 2% quarterly decline recorded in the Netherlands. In fact, the quarterly decline in housing prices seen in the second quarter, the 12th consecutive negative quarter, is the lowest since the fourth quarter of 2010, when prices fell by 0.1%.

Over the whole of the eurozone, housing prices experienced a decline in the second quarter of 2.2%, year-on-year, two tenths less than that recorded in the first quarter. However, in quarterly terms, housing prices rose by 0.3% after falling by 1.4% in the first three months of the year, representing the first price increase since the third quarter of 2011.

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Meanwhile, El Pais reported that the figure for the EU showed a fall of 1.3% in annual terms, two tenths less than the decline observed in the first three months of the year, while compared with the first quarter, the prices increased by 0.4%.

Among the EU countries for which data are available, the largest annual price increases were registered in Latvia (+8.8%), Estonia (+8.1%) and Luxembourg (+5.1%), while the steepest declines were recorded for Croatia (-19.7%), Spain (-10.6%) and the Netherlands (-7.5%). Compared with the first quarter, the biggest price increases were registered in Latvia (+5.1%), Estonia (+3.7%) and Denmark (+3.1%), while the most notable declines were for Croatia (-6.5%), the Netherlands (-2%) and Hungary (-0.9%)

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