The House Price Index (HPI) measures the evolution of market prices of all residential properties that are purchased by households (flats, detached houses, terraced houses, etc.), both new and existing, independently if bought for own-occupancy or as an investment.
According to preliminary estimates, in the third quarter of 2018 the House Price Index (see Italian IPAB) decreased by 0.8% compared with both the previous quarter and the same quarter of the previous year (on annual basis it was -0.4% in the second quarter).
The decrease on annual basis of HPI was only due to the prices of existing dwellings that showed a negative rate of change equal to -1.3%, from -0.8% in the previous quarter. New dwellings prices, on the other hand, increased by +1.4%, from +1.2% in the second quarter.
These events occured in presence of a phase of growth in sales volumes (+6.7% was the annual rate of change registered for the residential sector in the third quarter of 2018 by the Observatory of Real Estate Market belonging to Tax Office).
The decrease on quarterly basis in the HPI was mainly due to the decrease of prices of existing dwellings (-1.0%); prices of new dwellings also decreased compared to the second quarter, but to a lesser extent (-0.2%).