Tuesday 30 June 2009

UPDATE: Spain 1Q Housing Prices -7.6% On Yr, -2.7% On Quarter

UPDATE: Spain 1Q Housing Prices -7.6% On Yr, -2.7% On Quarter

(Adds breakdown on prices for new and secondhand housing.)

MADRID (Dow Jones)--The decline in Spanish housing prices accelerated in the first quarter, with prices of new homes down for the first time since the start of the downturn, data from Spain's National Statistics Institute, or INE, showed Tuesday.

Spanish housing prices fell at a 7.6% annual rate in the first quarter of 2009, the INE said, compared with a 5.4% annual rate in the fourth quarter, and a 3% decline in the third quarter.

First-quarter housing prices fell 2.7% from the quarter earlier.

Secondhand home prices fell 12.5% on the year, while prices for new houses dropped by 2%. The first quarter was the first to recorded an annual decline in the prices of new housing.

Spain's home-building boom, one of Europe's largest, started to deflate in 2007 after prices reached nearly three times their 1997 levels and after years of overbuilding.

The correction was hastened last year by tougher financing conditions in the aftermath of the global banking crisis.

INE Web site: www.ine.es

-By Christopher Bjork, Dow Jones Newswires; +34 91 395 81 23; christopher.bjork@dowjones.com

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(END) Dow Jones Newswires

June 30, 2009 03:45 ET (07:45 GMT)

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