June 16th, 2009

Last month’s House Price Index report fell a little flat because of the hope it would show that the decrease in house prices had reversed. Actually, both the March and April reports showed that Spanish property prices had remained at a relatively stable 10% down on an annual basis. While this is far from exciting – and a far cry from a complete turnaround – the data does suggest that house prices in Spain have bottomed out.

For the past four months, the House Price Index has been steady, 10% down Y-O-Y. Compared to the dramatic decline measured between the middle of 2006 and the start of 2009 -a 28% decline from peak to trough-, that’s quite a significant change in trend.

Even if the House Price Index for the rest of the year shows the Spanish property market bumping along the bottom at the current levels, many people will be relieved to have actually found the bottom – rather than worrying about how much worse things can get.

Related posts:

1. Spanish Property Prices Continue to Fall
2. Property prices fall across Europe
3. “Resale asking prices down 0.9pc in Q1″
4. Spanish house prices increased in Q3-2008
5. Spain Attracts New Wave of British Buyers

Tags: House prices, Property market trends, Realistic House Prices

This entry was posted on Tuesday, June 16th, 2009 at 13:07 and is filed under Property market. You can follow any responses to this entry through the RSS 2.0 feed.

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One Response to “House Prices in Spain Seem to Have Bottomed Out”

1. Fletch says:

   3 July 2009 at 21:30

   “…a relatively stable 10% down on an annual basis…. the data does suggest that house prices in Spain have bottomed out.”

   That’s a really strange piece of analysis. A stable 10% down annually is more like diving. 0% change would be bottoming out. And with unemployment continuing to rise and plenty of empty dwellings (> 1 mil I believe) throughout the country, it’s hard to believe prices will stop falling anytime soon.