In an en­vi­ron­ment of ri­sing in­terest rates

Spanish House Prices Fall -0.8% In 4Q22, First Drop Since 4Q20

Housing sector.
Housing sector.

Bankinter | House Prices fall -0.8% in Q4 (quarter-on-quarter) vs. +1.7% pre­viously. It is se­con­d-hand hou­sing that has suf­fered the most in this quarter (-1.4 q/q), while new hou­sing con­ti­nues to in­crease prices (+1.9% quar­te­r-o­n-­quar­ter). In yea­r-o­n-­year terms, prices have slac­kened to +5.5% in 4Q 2022 (year-on-year) vs +7.6% in the pre­vious quar­ter.

Analysis team’s view: This is the first quarter that prices have fallen in Spain since 4Q20 (a year marked by COVID). This is due to: (i) Higher cost of mortgage financing, in an environment of rising interest rates; (ii) Lower household savings rate, due to higher prices in basic consumer goods (energy and food); and (iii) Less attractive investment in rental housing, with a yield similar to the Spanish 10-year bond.

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