HE housing prices in spain increased by 0.6% in the first three months this year, as reported Wednesday by the National Institute of Statistics. These data represent a return to the upward path after prices corrected by 0.8% in October, November and December 2022. Housing increased by 3.5 percent year-on-year Between March 2022 and 2023.
In January, February and March, the living place rose in most autonomous communities. Only the Region of Extremadura, Castilla La-Mancha and Murcia recorded a contraction of 1.2%, 0.8% and 0.1%, respectively. The region in which the real estate appreciated the most was Navarra with an increase of 2.5%, followed by Melilla (1.9%), Canarias (1.9%), Aragón (1.4%), Galicia (1.3%), Cantabria (1.9%). 1,2) followed. ) and the Community of Madrid (1%).
Zero housing price increases more than second-hand
At this beginning of the year, biggest increases are concentrated in new constructionconcentrated only between 10% and 20% of operations. Prices in this real estate class increased by 3% in the last quarter, second hand closed almost flat (0.2%). Something similar happened in the last quarter of 2022; new construction rose 1.9%, while used use contracted 1.4%, representing the largest decline since the first quarter of 2013.
Why isn’t the brand new house demolished? Since the housing bubble burst, The production of flats and detached houses has always remained below the number of houses created.. For example, more than 200,000 homes were built last year, but public administrations only granted work visas to begin construction of around 110,000 units, according to data from CaixaBank. This deficit causes prices to maintain or rise in the face of stable demand and insufficient supply.
Also, unlike what happened before 2008, Builders have sold most of their homes under construction and are waiting to get the job done.. Without going any further, the two largest Spanish companies, Aedas Homes and Neinor Homes, have booked 75% and 71% respectively of apartments to be delivered in 2023.
Sales are also falling
In the first quarter of the year, 162,236 houses were tradedcompared to 165,799 people who did so in the first three months of last year, 2.1% decrease. March was the third month in a row with sales declines after 21 consecutive months of huge increases.
They have already guessed from the real estate portal Fotocasa The correction in the number of transactions will continue in the coming months.As a result of the rise in Euribor and tightening in financing conditions. “The trend to adapt to the new economic situation is starting,” they commented.
It’s the market consensus 2023 will close with nearly half a million salesCompared to the 650,000 reached in 2022, it’s far from the “historical average,” according to CaixaBank. This correction means returning to the figures recorded in 2019 and leaving behind the enthusiasm of 2020, 2021 and part of 2022.