Housing Price Growth Accelerates in May

Spain property price update

• The average price of new and used housing rose 0.9% in May compared to the previous month, bringing the annual rate to 9.9%. 
•  All areas recorded price acceleration, with growth above inflation. 
•  Island territories continue to stand out as the most dynamic group, both in monthly rate (+1.6%) and annual rate (+15.5%). 
•  The General Index remains 9.7% below the peaks reached in 2007. 

Housing prices continued to accelerate in May. 

The Tinsa IMIE General and Major Markets Index recorded a 0.9% increase in monthly rate and 9.9% in annual rate. All areas experienced growth above inflation over the past year. 

"The strong performance of employment combined with moderation in mortgage costs incentivizes access to credit and sustains the upward trend in mortgages and property transactions since the beginning of the year," states Cristina Arias, director of Tinsa by Accumin's Research Department. 

Price growth is widespread across all regions, although the greatest pressures are recorded in island territories and capitals and major cities, where competition for limited available space is most pronounced. The average value of new and used housing has increased 53.6% since the minimum recorded during the financial crisis and stands 9.7% below the 2007 peaks.