Housing prices continued to rise in the first quarter, with the free-market index climbing 8.5 percent and the annual rate hovering two percentage points above the prior quarter. This marks the sharpest increase seen since the third quarter of 2007, according to the Home Price Index from the National Institute of Statistics, released recently by INE.
The early-year rebound pushed quarterly growth to a robust pace, helping the free housing market gather momentum after a modest decline in the preceding quarter. The quarter over quarter rise underscores a sustained pattern of price gains across the market, driven by demand and limited supply in many areas.
When broken down by housing type, new homes led the gains with a year-over-year increase of 10.1 percent. This pace is four percentage points higher than the annual rate recorded in the last quarter and stands as the strongest print since the first quarter of 2019. Such a surge reflects continued strong demand for newly built properties, supported by ongoing construction activity and favorable financing conditions in many regions.
Second-hand homes also posted notable gains, rising 8.2 percent year over year. This pace is nearly two percentage points above the previous quarter and represents the fastest growth seen since the second quarter of 2007, just before the onset of the financial crisis. The resilience of the used market signals sustained buyer interest and a shortage of available listings in many markets.
On a quarterly basis, the January to March period of 2022 showed a 2.6 percent rise from the fourth quarter of 2021, marking the largest quarterly increase since the second quarter of 2018. The momentum across the market indicates broadening price appreciation across most segments, with inventory constraints continuing to shape the trajectory.
By category, new home prices advanced 3.2 percent from the fourth quarter of 2021 to the first quarter of this year, the steepest quarterly uptick since the third quarter of 2020. Second-hand home prices rose 2.4 percent in the same span, posting the highest quarterly increase since the second quarter of 2021. These dynamics illustrate a bifurcated but rising market where new construction leads the tempo while existing homes keep pace through steady demand and favorable financing options.