The price of housing advances at the rate of the brick 'boom' of 2007 and grows 8.5% in the first quarter

The rebound in housing prices returns to 2007 levels, in the midst of the real estate boom. The National Institute of Statistics has published this Wednesday the annual variation of the Housing Price Index (IPV) in the first quarter of 2022, when it increased more than two points and stood at 8.5%, the highest since the third quarter of 2007.

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By type of housing, indicates the INE, the annual rate of new housing rises four points, to 10.1%. For its part, the variation of second-hand housing reached 8.2%, almost two points above that registered three months earlier. This rate is the highest for this type of housing since the second quarter, also, of 2007.

The previous quarterly statistics, which corresponded to the last quarter of 2021, indicated a rise of 6.1%, in which it was already the strongest rebound since 2019. Therefore, if the advance between consecutive quarters is compared, the rebound was 2.6%. In that short-term comparison, new home prices are up 3.2% between the first quarter of 2022 and the fourth quarter of 2021; while that of second-hand increased by 2.4%.

In recent weeks, the experts consulted by pointed out that the purchase of housing has skyrocketed in recent months due to the volume of operations, which is reflected in prices. However, they ruled out a bubble like the one from 13 years ago, because now there is no such facility when it comes to granting loans, which concentrates home purchases in a part of the population with higher incomes, while others are tied to rentalso shot up in prices, especially in the big cities.

Balearic Islands, in the lead; Cantabria, the biggest rebound

If the annual comparison is made by autonomous communities. The highest rate is, again, Illes Balears, where it reaches 12%, ahead of the Canary Islands and Cantabria, where it stands at 11%. Precisely, the largest year-on-year increases, of 3.3, 3.1 and 3.1 points, occurred in Cantabria, Canarias and Castilla-La Mancha, respectively.

On the other hand, the communities where the annual rate of house prices increased the least were Principality of Asturias, Aragon and Galicia, with increases of 1.1, 1.4 and 1.5 points, in each of them.

In Madrid, the interannual rate points to a price increase of 7.5%; while in Catalonia it stands at 7.7%.

If only the comparison of the last two quarters is taken into account, and not the advance at the end of March 2022 compared to the same month of 2021, the greatest price increases have occurred in the Canary Islands, Cantabria and the Foral Community of Navarra, with increases of 4.4%, 4.1% and 3.9%, respectively. On the other hand, Extremadura (0.5%), Castilla-La Mancha (1.6%) and Castilla y León (1.8%), recorded the lowest quarterly increases.

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