The resale housing market is showing no sign of easing. The average price in Spain stood in July at 3,154 euros per square metre, 0.7% higher than the previous month and 16.2% above a year ago, according to the Fotocasa Property Index. Converted into a standard 80-square-metre flat, the figure has jumped from 217,214 to 252,308 euros in just twelve months: 35,094 euros more for the same home.
"The price of an average home in Spain has now exceeded 250,000 euros for the first time," sums up María Matos, head of research at Fotocasa, who attributes the rise to an insufficient supply in the face of demand that remains robust despite the mortgage strain households are already bearing. Matos herself expects the market to enter over the coming months a phase of "gradual normalisation", as more buyers hit the limit of their financial capacity.
