Housing price rises 8.4% and accumulates eleven-month growth

average price of New Home And access rose 1.1% in May compared to the previous month and 8.4% compared to the same month in 2021, with which it already accumulates eleven months of year-over-year growth, according to appraiser Tinsa.

Growth is largely driven by price developments in capitals and large cities, maintaining a similar intensity to those recorded in April, as well as metropolitan areas and other municipalities, while home prices on the Mediterranean coast and the Balearic and Canary Islands remain stable.

Financial Crisis

New and used housing done revaluation remains 31% below the post-financial crisis (February 2015) low and 21.9% below the 2007 high, when the bubble burst.

“Price impulses persist in the poles of activity. Capitals and clusters of large cities and metropolitan areas that initially took the most time to recover levels. EpidemicThey are the ones that grow more intensely in May”, explains christina ariasoDirector of Tinsa Studies Service.

Demand remains active in the first months of 2022, buy and sell transactions maintain the pace of 2021 and the concession of mortgage which grows in a balanced way.

Nevertheless, the appraiser expects that the firmness of inflation during the year will reduce the purchasing power of households and tighten new mortgage lending due to greater risk by financial institutions, which will be accompanied by a rise in rates. Central bankWill influence housing purchase decisions, slowing demand and thus softening the rise in residential product prices.

With regard to the supply of new construction, Christina Arias points out that it remains in limited numbers, which restricts the growth of housing stocks and creates upward tension in prices that can persist in the activity poles, where The areas are more densely packed. populated And there is more competition for space.