House prices appear to be beginning to lose their immunity to Covid-19. During the month of November the price of flats has fallen 0.1% in the province of Castellón compared to October and the decrease accumulated in the last 12 months it is already in a 2.5%, based on the latest real estate price index published by idealista.
While the price falls in the province of Castellón, in the national sphere, used housing continues to resist and registers a 1% increase during the month of November, standing at 1,769 euros per square meter. However, in the province of Castellón, the average price is considerably lower, since it stands at 1,061 euros per square meter.
If we look at the last quarter, the average price of used housing has risen 1.9% in the province, although the year-on-year evolution is negative (-2.5%).
In the capital of La Plana, the contraction of the average prices of the second hand housing it has been much larger than in the rest of the province. Thus, compared to the average fall of 2.5% in the province as a whole, prices in the city of Castellón have fallen in the order of 3.8% in the last 12 months, according to the data provided by idealista.
Specifically, during the month of November, prices fell 0.5% compared to 0.1% for the rest of the province.
The values are practically identical, since the average price of second-hand housing in the province of Castellón is around 1,061 euros per square meter compared to 1,062 euros per square meter on average in the capital of La Plana.
Far is the historical maximum price that second-hand housing in the province of Castellón reached in the years prior to the outbreak of the real estate crisis in 2008.
If we compare the sale prices of the flats then to the current ones, the difference in Castellón continues to be one of the highest in the country as a whole, with decreases of between 40% and 44% compared to the average prices of 2007 and 2008.
The maximum price of second-hand housing in the province of Castellón was detected in July 2007, with a price that stood at 1,896 euros per square meter, so at the moment the price is 44% cheaper, since it stands at 1,061 euros per square meter.
For its part, idealista places the maximum historical price of used housing in the city of Castellón in November 2008, when it stood at 1,782 euros per square meter, 40.4% more than 1,062 euros per square meter current.
Despite the contraction of prices in the province of Castellón, the data for the Valencian Community continue to be positive. The housing used in the Community is quoted at an average of 1,405 euros per square meter at the end of November, 0.1% less than the previous month but 2% more than a year ago, according to the latest index of real estate prices published by idealista.
2022 horizon
Covid-19 is going to leave its mark on the residential market of Castellón. The price of housing starts the decline and it will not be until the horizon of 2022 when the trend changes again, albeit timidly. At least that is what the projection carried out by the appraiser of the Valencian Community Euroval and its Institute of Real Estate Analysis (Instai) indicates that  «prices will begin a de-escalation that will last at least until the end of the year that is coming », that is, from 2021.
The report points out that the average price per square meter in the province of Castellón as a whole will foreseeably fall from the 1,067 euros registered in the fourth quarter of 2019 up to 994 euros expected for the same period in 2022.
In total, the cumulative decline for the period 2020-2022 it will be a 6.9% compared to the last quarter of last year 2019.
The projected fall in house prices according to Euroval will mean a certain return to the starting point. Covid-19 is going to be noticed in the evolution of housing prices in Castellón which, predictably and until the end of 2021, will lose all the revaluation gained since 2015, when the residential market entered a new upward cycle.
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