the housing price index has shown a moderated rise that persisted through the third quarter, with an annual increase of 7.6 percent reported by the National Institute of Statistics. this trend reflects a continuation of price growth across the market, driven by demand in the larger urban areas and supported by a stable supply in many municipalities. INE data released this Friday confirms the annual uptick while also noting a 1.7 percent increase from the previous quarter, marking the lowest quarterly rise observed so far this year. as a result, housing prices have advanced for 34 consecutive quarters, a streak that highlights a sustained upward trajectory in property values.
overall, housing prices advanced by 8.5 percent in the first quarter, representing the strongest quarterly increase since late 2007. the second quarter saw a slight slowdown to 8 percent, and the third quarter brought another rebound to 7.6 percent. since the start of 2022, prices have risen on average by 6.3 percent, with second-hand properties showing a larger gain of 7.8 percent compared with 6.8 percent for new construction. these figures illustrate a resilient market where demand remains robust while construction activity catches up to consumer interest in both established and emerging neighborhoods.
second hand housing
second-hand housing emerged as the sector with the strongest gains in the July to September period, increasing by 7.8 percent. this rise came just shy of the previous quarter, signaling continued buyer interest in existing homes. since the second quarter of 2014, prices in the second-hand segment have generally trended upward, reflecting accumulated demand and the compounding effect of steady sales pockets across regions.
in contrast, new housing prices eased slightly, dipping to 6.8 percent. this modest decline contrasts with the uptick seen in the resale market and may reflect a pause in new-build activity or adjustments in pricing strategies amidst evolving construction costs and regulatory conditions.
between the third and second quarters, new house prices rose by 0.9 percent, while second-hand house prices increased by 1.9 percent, illustrating a favorable environment for sellers across both segments but with a stronger push from the existing homes market. the divergence between new and second-hand pricing underscores the different dynamics at play in supply chains, mortgage rates, and buyer preferences in the current period.
cantabria leads advances
among autonomous communities, cantabria posted the largest price gain at 9.3 percent, followed by the balearic islands and andalusia at 8.3 percent each. la rioja, canary islands and catalonia reported increases of 8.1 percent in each case, while basque country and the community of madrid rose by 7.8 percent and 7.6 percent respectively. these movements reflect regional variations in demand, development activity, and affordability in different parts of the country.
compared with the second quarter, most communities showed modest price increases. the most notable declines were seen in the balearic islands, murcia, and andalusia, with reductions of 2.6, 2.2, and 1.9 percentage points respectively. despite these softer readings in certain areas, several communities still posted meaningful quarterly gains and contributed to the national growth trend.
within this period, the communities with the strongest year-to-date increases were basque country, extremadura, and catalonia, registering increments of 1.3, 1.2, and 0.9 percentage points respectively compared with the previous quarter. looking across the year, cantabria led with an 8.3 percent rise, followed by the canary islands at 7.6 percent, la rioja at 7.5 percent, melilla at 7.3 percent, and the balearic islands at 7.1 percent. these figures highlight where price momentum has been most persistent and where buyers have shown sustained interest in the housing market across regions.