Housing prices experienced more intense variations in some geographic regions than in others in 2023. A year in which notable changes were recorded within the sector as a result of the new global context. At Aliseda Real Estate we review the evolution of housing prices in 2023.
The price of housing in 2023
The annual rate of change in house prices increased by 0.70% in November and 1.6% in December 2023 compared to December. These figures represent the largest increases of the entire year after ten months of year-on-year declines.
Although in general absolute prices fell in 2023, the latest report shows how the average price of second-hand housing rose in twelve of the seventeen Spanish Autonomous Communities. Extremadura was the Community where it increased the most (6.6%) followed by Navarra (4.5%), the Basque Country (3.3%), Catalonia (2.7%), Castilla-La Mancha (2.5%) , Valencian Community (2%), Asturias (1.7%), Cantabria (1.5%), Andalusia (1.2%), Madrid (1%), Galicia (0.9%) and Balearic Islands (0. 3%).
Regarding Madrid and Barcelona, the city of Madrid closed 2023 with an increase of 4.1% compared to the previous year, with the districts of Salamanca, Chamberí and Centro being the ones with the highest prices. In the case of Barcelona, the annual variation rose 5.6% compared to the end of the year, the districts of Sarrià – Sant Gervasi, Les Corts and L’Eixample topped the list of the most expensive to live.
Interest in buying a home is growing
During 2023, consumer interest in buying a home also grew. As Fotocasa states in its report, interest grew by 43% compared to the previous year. This increase may be one of the main factors that justifies why housing prices have not only not fallen, but have fluctuated with small increases in some regions and others. This fact also shows that many owners continue to resist lowering prices, except in those cases where they are in a hurry to sell.
Medium-sized provincial capitals and regions with less than 5,000 inhabitants have been the ones that have seen the most growth in demand. A study presented by Idealista that compares the search volume of January 2023 with June 2023 shows that Castilla-La Mancha is the region that concentrates the highest percentage of searches with 43.4% followed by Cantabria (39.1%) , Castilla y León (33.7%), Extremadura (29.3%), Navarra (26.6%) and La Rioja (26%).
On a year-on-year basis, the upward trend continues to be present in the first month of 2023 and forecasts suggest that the largest increases will occur from the second half of the year. Experts also foresee a stabilization of new consumer habits and preferences when searching for a property.
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