Spanish house prices rise 4.5% in 3Q2023 supported by strong labour market

barrio salamancaHouses in Salamanca district, one of the most expensive areas in Madrid.

Bankinter: House prices rise +4.5% in 3Q2023 (year-on-year). The Housing Price Index, compiled by the INE, points to a price increase of +4.5% in 3Q 2023 (year-on-year), even accelerating from +3.6% previously. In quarter-on-quarter terms +2.5% versus +2.1% previously. Second Hand Housing rises +2.2% year-on-year, while New Housing +4.1% year-on-year.

Analysis: House prices surprise positively and will probably exceed our forecast of +1% by 2023. They are supported by a strong labour market, with wage increases close to +5%. Looking ahead to 2024, there could be some correction, although it would be nominal (-2% est.) and temporary due to the high interest rate environment. Fundamentals are good and there is no bubble.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.