2016 Spanish house price data:
The Spanish Institute of National Statistics has released the latest house price data for the second quarter of 2016.
The figures make for very interesting reading, particularly in view of the June UK referendum regarding leaving the European Union.
The second quarter 2016 figures show a year-on-year price increase of 3.9%. This is markedly down from the 6.3% year-on-year increase in the first quarter of 2016.
There could be a number of reasons for this; in particular, there seemed to be a slowdown in the market in the weeks leading up to the UK referendum. It appears many potential buyers were waiting for the outcome before committing to purchase a property.
Also, many of the Spanish banks continue to accept reduced offers on repossessed properties or those properties with mortgages in arrears.
The impact on property prices:
This could be one of the reasons why the figures for new build properties and resales are quite different.
While new builds increased in price by 8.4% in comparison with the second quarter of 2015, the prices of resale properties increased by only 3.2%.
The third quarter figures are likely to show further improvements, as there is much more activity in the housing market with a continual influx of overseas buyers, mainly from northern Europe, stimulating the market.