New house price index expected in Spain

Spain is launching a new house price index on Oct. 1, the Spanish statistics institute said.

The data will be an alternative to Housing Ministry figures which analysts have criticized for not reflecting the property market slump.

Spanish house prices dropped by 0.3 percent between April and June, while home sales fell 31.5 percent in the second quarter from last year, the Housing Ministry said earlier this month.

The estimate prices in the biggest Spanish property agencies have dropped around 5 percent this year and some economists have said the value of Spanish real estate could drop by more than a third.

The new House Price Index (IPV) will report data on year quarter on new and used homes, but the institute said it aims to report the data on a monthly basis and they could form part of Spain’s EU-harmonized inflation figures.

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