House prices climbed 3.9 per cent year-on-year in the second quarter of 2016,according to the National Statistics Institute, slower than the 6.3 per cent growth recorded in the first quarter. New homes saw prices rise 8.4 per cent, while existing homes saw prices rose 3.2 per cent. On a quarterly basis, house prices rose 1.8 per cent, the second quarter in a row of growth using that measure.
That growth is only forecast to keep going, according to BBVA.
The bank’s latest research shows that the market had a healthy first half of the year, fuelled by low mortgage rates and high tourist figures. The lender predicts that the market will continue to enjoy positive growth in the future.
“Economic moderation expected for the last months of the year suggests slower growth in housing sales compared to those recorded in the first half,” admits the bank, but expects sales, values and construction to increase, which will, in turn, fuel demand. Indeed, with sales currently rising in discounted conditions, those transactions are forecast to help push up prices.
