House prices continue to rise in Spain. In the summer of 2022, the value of a house increased by an average of 7.6%. Despite the fact that experts speak of “the cooling of the market”, house prices are approaching a historic high point.
The National Institute for Statistics in Spain (INE) recently published the most recent figures on the house price index (IPV). The Ine reports that the average value of a house has risen by 7.6% on an annual basis.
Moderate price increase indicates cooling the market
Although house prices also experienced an increase in the past quarter, experts, consulted by the Spanish news site 20minutos.es, believe that these figures indicate a cooling of the market.
The pace of the rise in house prices slows down for the second consecutive quarter. In the first quarter of this year, house prices rose by 8.5% and in the quarter thereafter by 8%. Despite this delay in house prices, the average house prices in Spain are only 5% of the historic peak in 2007.
The successive interest rate increases of the European Central Bank are one of the causes of this moderate growth. Mortgage loans have also become increasingly expensive over the past six months, reducing the possibilities for buyers.
In which Spanish region did house prices rise the fastest?
House prices vary considerably per autonomous region in Spain, and their increases. House prices in Cantabria, for example, rose the fastest, with an average increase of 9.3% in the third quarter of 2022 compared to Q3 2021. The Balearic Islands and Andalucia follow here, where the houses have become 8.3% on average more expensive. In the Canary Islands, La Rioja and Catalonia, house prices rose by an average of 8.1%.
The most moderate rises can be seen in Galicia where prices rose on average by 6.1%. House prices in Aragón increased by 6.2% compared to last year.