Housing moderates prices during the second term of the year, and this fact is confirmed by the slowing down of prices in our real estate sector. The facts and figures offered by Índice de Precios de Vivienda (IPV),  Housing Price Index, regarding this second term show a price rise, being the yearly variation registered at 2,1%. However, it is the lowest increase in five years as the rise is 1,1% lower. We can see that a slowing down of prices is taking place because evolution has been held back during the last 6 consecutive months. In spite of everything, it is important to stress that housing prices continue to rise quarter over quarter. In all, prices have increased during 25 consecutive quarters. However, we must bear in mind that in recent times the rise is much lower than it used to be and this is revealed by the restraint in prices we have already mentioned. Undoubtedly, the coronavirus health crisis has influenced the slowdown in housing prices. It is unknown how this virus will evolve and whether prices will be even more affected. Nonetheless, the current downturn in the market is an indisputable fact. Let´s look at the facts and figures.

A FALL IN THE ESCALATION OF PRICES

In the second term of 2020, new housing in Spain has suffered a pullback in prices of nearly two points with regard to the second term of 2019. According to facts and figures shown by IPV (Índice de Precios de Vivienda), new housing prices only rose 4,2% during this second term. However, regarding second-hand housing prices dropped nearly one point, rising only 1,8%. These two figures which refer to annual rates, are the lowest since 2015. If we look at the development quarter over quarter, we can see that housing prices rose 0,1% in the second term of 2020, whereas in the first term they rose 1,1%. Therefore, this second term new housing prices dropped more than two points with regard to the first term. Whereas, second-hand housing prices increased slightly, only five-tenths.

FACTS AND FIGURES IN THE COMMUNITIES

Nearly every Autonomous Community reduced the annual rate during the second term of 2020. In our two most important communities, the facts and figures are very similar. In the Community of Madrid prices only rose 1,7% (the first term they rose 2,5%) and in Catalonia they increased 2,3% (the first term they increased 3,2%). In order to see the sharpest decline in prices we must go to the Community of Navarre with a two point fall. The Community of Valencia dropped 1,9 points and the Basque Country fell 1,8 points. On the other hand, the communities where the annual rate increased most were Extremadura (one point), Castilla-La Mancha (half a point), and Cantabria (0,3 points).