House prices saw first increase since 2008

HOUSE prices rose for the first time in six years.

Private property prices increased by 0.8 per cent between April and June, compared to the same period in 2013.

This is their first positive annual increase since the same period six years ago and puts an end to the long period of annual declines registered since 2008, according to data from the National Statistics Institute.

The largest year-on-year price increase was witnessed in Madrid (+2.7 per cent), followed by Valencia (+2.3 per cent), Cantabria (+1.8 per cent), Catalonia (+1.6 per cent) and Murcia (+1.2 per cent).

In contrast, the increases were below the national average in Andalucia (+0.7 per cent), the Balearic Islands (+0.4 per cent) and Galicia (+0.1 per cent).

The rest of the Spanish regions saw a decrease in housing prices, with the sharpest drop registered in Navarra (-6.1 per cent), Extremadura (-3.5 per cent), Aragon (-2.3 per cent), Asturias (- 2 per cent), Castilla y Leon (-1.9 per cent), La Rioja (-1.7 per cent), Castilla-La Mancha (-1.6 per cent), the Basque Country (- 1.4 per cent) and the Canary Islands (-0.2 per cent).

According to eleconomista.es, the price of resale housing increased by 0.2 per cent between April and June, compared to 2013.

This is the highest rate since the fourth quarter in 2007.

On the other hand, the prices of new homes registered an increase of 1.9 per cent, which is the first positive rate since October-December 2008.