Home prices fall across Spain

The average price of homes in Spain (excluding newly built properties) fell in May by just over half a percentage point from April’s average and by 6.4% when compared with May 2014.
A report from pisos.com establishes that all regions of Spain experienced inter-annual reductions in the price of homes, the greatest falls having been registered in Murcia, where the average was down by over 12%, and Castile-La Mancha (10.3%).
The prices are measured according to the cost per square metre - the average for used homes was 1,518 euros in May - but the Basque Country is the region which had the highest cost, one greatly superior to the average: 2,863 euros per square metre. The Balearics came second with an average of 2,041 euros, just ahead of the community of Madrid. The overall average was influenced by regions with much lower costs - for instance Castile-La Mancha, where it was 951 euros, and Extremadura (1,159 euros). According to the CEO of pisos.com, Miguel Angel Alemany, existing housing stock, despite gradual recovery in the construction of new homes, remains important, while there is still scope for improvement in prices. Alemany also suggests that the buyer profile is shifting somewhat towards the investor as opposed to simply a buyer looking for somewhere to live.