According to the latest statistics it would appear that house prices in Spain have fallen more rapidly in recent months. They are down 4.6% over the last 12 months. There has been an increase from -4% in June, to 4.6% in August in price falls. Costal property prices have fallen by 22% since August 2007.
When the rise in VAT on new home sales was introduced in July it was feared that property sales in Spain would plummet. However, the National Institute of Statistics show there were 38,838 home sales in July, which is an increase of 15% on the same time last year and 16% on the previous month.
Year to date cumulative sales up to the end of July are 10.3% up from last year but still down 47% compared to 2007. Sales have increased every month this year on an annualized basis.
Will this trend continue, we will have to wait and see!
