Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Spanish First-Quarter Home Prices Fall for 10th Quarter

April 18 (Bloomberg) -- Spanish home prices fell for the 10th quarter as sellers scaled back their demands in a bid to complete sales before interest rates rose, deterring potential buyers.

The average price of houses and apartments declined 4.6 percent in the three months through March from a year earlier, the Housing Ministry said today on its website from Madrid. Prices dropped 2.5 percent from the previous quarter, in the 12th quarterly decline.

Spain, which has the highest unemployment rate in Europe after almost two years of recession, also has the highest ratio of outstanding floating-rate mortgage loans in the region, according to data compiled by the European Mortgage Federation.

“Rate rises discourage buyers and sellers dropped asking prices before rates increased to encourage sales,” said Fernando Encinar, head of research at Idealista.com, Spain’s largest property website.

The European Central Bank raised the benchmark interest rate to 1.25 percent on April 7 after keeping it at a record low of 1 percent since May 2009 to fight the financial crisis.

To contact the reporter on this story: Sharon Smyth in Madrid at ssmyth2@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.