Overview
- Official INE data show a 12.8% year-on-year rise in the third quarter, the steepest since early 2007, with a 2.9% quarterly increase and 42 consecutive quarters of gains.
- Second-hand homes led the surge with a 13.4% annual increase, a series record, while new-build prices rose 9.7% and slowed; quarter-on-quarter, resales advanced 3.3% versus 0.6% for new homes.
- All regions recorded increases, led by Murcia (+15%), Aragón (+14.6%) and Madrid (+14.2%), with Navarra posting the smallest rise (+10.9%).
- Sector analysts say the price jump is eroding affordability as average mortgage rates fall below 3%, diluting the benefit of cheaper credit.
- Authorities distinguish today’s market from 2007 yet warn of overvaluation and consider limits on high loan-to-value mortgages, as BIS ranks Spain among the top five for real price growth and registrars log a 3.6% October sales drop.