Housing prices in Europe have been rising at a tremendous pace over the past five years, and Spain has led the way. According to a recent report in the Guardian Newspaper, prices for Spanish housing have doubled from 2001 to the end of 2006. ( Property For Sale Spain )This information comes from research that mortgage lender Halifax has done on house prices throughout Europe.
Home prices in the UK went up by 90% over the same five year period. Across Europe, prices rose an average of 40% over the same time period. The most expensive place, on average, to buy a home is Ireland. The average price for a home across the country was £209,300 at the end of last year, with the Netherlands having an average price of £190,900, the UK £187,100 and Spain £150,200.
Economist Tim Crawford of Halifax indicated that Ireland’s house prices had been driven by the strong economy and immigration of people taking advantage of it. The housing sector in the country has done well to keep up with demand, but prices are still very high.
The least expensive properties in Europe belonged on average to Finland, with an average price of £92,300. The slowest growth rates over the five year period were in Austria, with a 6% increase, and Portugal, with a 7% rise in home prices. Germany actually had a negative growth, with prices falling by 5%.
As interest rates rise, lenders are become increasingly stringent in their mortgages, which is partly the result of the sub-prime problems the US has had recently. This, and a slowing overall economy, has led analysts to predict that the boom is coming to an end.
Mr. Crawford said that “We are possibly starting to see prices settle in areas where they are higher.”
