National house prices fall most in Balearics during first quarter

THE Balearic Islands is the region of Spain which has suffered the greatest downturn in prices in the private housing market during the first quarter of this year, reported Central Government yesterday.

Anunciacion Romero, Director for Housing Architecture and Policy, explained that prices had fallen the most in the Mediterranean areas of the country as it is here where the largest number of unsold properties remain. Details released by the Housing ministry yesterday showed that prices were down in the first quarter of the year in the Islands by (6.3 percent), followed by Valencia (6.2%), Andalucia (5.5%), Murcia (5.1%) and Catalonia (4.9%).

In contrast, said Romero, property was starting to increase in price in Cantabria and in provinces where housing stock was beginning to “disappear.” On a year-on-year basis, said Romero, the national average for house prices has fallen during the first month of 2010 by 4.7 percent, “but the rate at which they are falling is slowing down,” the Director confirmed, adding that the adjustment in house prices is being brought into line after a period when those who were needing to find a home, simply didn't have the money to pay the prices being asked.