Spanish house price index falls again

THE official Spanish House Price Index from the Department of Housing fell by 10 per cent in 2012 according to latest figures.

According to the department of statistics, this is the first time since records began that Spanish property prices have decreased by double digits in nominal terms. Spanish property prices fell 12.9 per cent in 2012 and have fallen by double digits for the last three quarters.

The average Spanish house prices are now 27 per cent below the peak and almost exactly the same as they were in real terms in 2008 during Spain’s property peak.

House prices fell by 10 per cent last year in most of the popular foreign holiday-home regions of Spain.

Falling house prices are one of the main reasons why so many Spanish residents have no plans to invest in property in 2013 because of the expectations that prices may drop even further.

According to the latest consumer survey, just 3 per cent of the population in Spain plan to buy a home this year due to economic problems including unemployment rates, Spanish residents remains cautious about buying property.