The brick faces a new phase in Spain. In the face of the optimism of the previous two years, there is increasing talk about the slowdown in the residential market and the data support this change. The latter point to a slowdown in the rise that house prices have been experiencing so far. It is not that they do not rise, but that they rise less than in previous quarters .

To be exact, 5.3% between April and June of this year compared to the same period of 2018, according to the housing price index published yesterday by the National Statistics Institute (INE). This is the smallest progress since the end of 2016, when it rose 4.5%, and coincides with the threats of economic slowdown inside and outside our borders, with political instability and the risk of new general elections, with signs of exhaustion of the labor market and with the fall in family savings , currently at record lows.

Its impact joins the effects of the new mortgage law and all together it is being noticed in different aspects of the residential market during the first half of the year. For example, the concession of mortgages has been slowed down - 29,900 were signed in June, 2.5% less than a year ago - and the sale of houses - in the first semester 263,557 people closed an operation, a figure similar to the first half of 2018-.

Although the cocktail may seem alarming, industry experts analyze it as expected and prefer to use the terms "moderation" or "stabilization" instead of slowing down. "We were already advancing that the evolution of prices and activity in the market was going to be more moderate in 2019 compared to what we saw in previous years as a result of the economic slowdown, and little by little the different statistics confirm this trend," he explains. Beatriz Toribio , Director of Fotocasa Studies.

In his opinion, citizens are increasingly finding it difficult to access the purchase of a home, which leads to a decrease in demand and, consequently, also in prices.

"The price of housing has grown at a very strong pace and much higher than the purchasing power of citizens who, at the same time have less saving capacity and less possibilities of accessing financing, which explains the difficulties of access to shopping market. " And he also believes that the slowdown in rising prices will go further the rest of the year.

All types of homes

The slowdown, therefore, affects all types of homes, both new and second-hand. In the first case, the price between April and June increased 7.2% year-on-year, more than three points less than in the previous quarter; in the second case, the advance was 5%, 1.2 points less than between January and March.

By communities , the greatest decreases were recorded in Cantabria, Community of Madrid and Catalonia, with decreases of 3.5, 3.2 and 2.4 points, respectively. On the other hand, Asturias, Galicia and Murcia recorded the greatest increases, with increases of 1.3, 1.2 and one point, respectively.

Cities and big capitals

The INE data points in the same direction as other statistics published in recent days. In the case of the Tinsa appraisal company, its latest references are from the month of August and not only confirm the brake in the rise in prices, but this "especially notorious in the capitals and large cities."

"After a slight rebound in July, August confirms the trend of moderation in prices, with notable monthly adjustments in the capitals, large cities and its metropolitan areas," Rafael Gil, director of the Tinsa Research Service, explained after the publication of the data. Prices return to levels similar to those of the beginning of the year or even lower.

However, although the average value of housing in the capitals and large cities decreased 1.2% between the months of July and August, it remains 3.1% above the level of a year earlier (August 2017 ). The smallest towns registered an interannual variation of 5.7% in August.

According to the criteria of The Trust Project

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  • Murcia
  • Galicia
  • Spain
  • Madrid's community
  • Catalonia
  • Cantabria
  • Asturias
  • Mortgages

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