The latest quarterly snapshot from the National Institute of Statistics (INE) confirms a notable rise in free housing prices, climbing 8 percent year over year in the second quarter. This IPV indicator marks a softer momentum than the previous quarter, which recorded the strongest rebound seen in nearly a decade and a half. The trend signals persistent demand and a tight housing market, even as the pace of growth steadies from the prior high watermark.
As free housing prices advance into the second quarter, they accumulate a broader, multi-quarter gain, illustrating a sustained elevation that translates into roughly eight years of incremental increases compressed into a few quarters. This sustained climb underscores ongoing drivers such as limited housing supply, favorable financing conditions, and shifting buyer expectations, all of which contribute to a higher overall price level across the market.
Looking at different housing segments, new home prices rose 8.8 percent from the same period in 2021. This rate sits 1.3 percentage points below the annual growth observed in the first quarter of 2022, indicating a cooling touch relative to the hottest phase of the post-pandemic rebound. The data suggests builders are maintaining momentum, but the annual comparison reveals a softer acceleration when viewed against the peak growth period.
Second-hand home prices also continued higher, increasing by 7.9 percent year over year, representing a modest 0.3 percentage point uptick compared to the prior quarter. This pattern points to steady demand in the resale segment, supported by existing homeowners and buyers who value current inventory and proximity to amenities in the regional market.
On a quarterly basis, the second quarter showed a 1.9 percent increase in house prices from the first quarter, a pace that sits seven-tenths of a point below the growth recorded earlier in the year. The continued rise through the quarter marks the sixth consecutive quarter of price gains across the housing sector, highlighting a persistent upward trajectory despite occasional monthly fluctuations. In the broader context, this six-quarter streak reflects a balance between supply constraints and sustained buyer interest, reinforcing a market that remains comparatively tight in many locales.
New house prices displayed limited movement, posting a marginal 0.1 percent increase in the second quarter after a stronger 3.2 percent rise in the first quarter. This shift indicates that new construction activity remains resilient but is experiencing a softer quarterly momentum, likely influenced by input costs, developer timing, and regional demand patterns. In contrast, second-hand house prices advanced by 2.3 percent from April to June, though this quarterly gain eased by about one-tenth relative to the previous quarter,
reflecting ongoing dynamics in the resale market such as inventory levels, buyer sentiment, and regional economic conditions. The juxtaposition of modest gains in new builds with steadier increases in existing homes paints a picture of a market recalibrating after rapid post-pandemic growth, while still showing resilience in price levels across both segments. Analysts expect this balance to influence affordability metrics and regional price dispersion in the coming months.