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 second quarter of 2019 the HPI (see Italian IPAB) increased by 1.3% compared with the previous quarter and decreased by 0.2% compared with the same quarter of the previous year (it was -0.9% in the first quarter).
The slight decrease on annual basis of HPI was only due to the prices of existing dwellings that showed a negative rate of change equal to -0.4%, from -1.3% in the previous quarter, whereas prices of new dwellings increased on annual basis by 0.1%, showing a deceleration compared to +1.5% in the first quarter of 2019.
The decrease of HPI occured in a context of a persistent growth of the sales volumes (it was +3.9% the annual rate of change registered for the residential sector in the first quarter of 2019 by the Observatory of Real Estate Market belonging to Tax Office).
The increase on quarterly basis in the HPI was only due to the prices of existing dwellings (+1.5%), while prices for new dwellings slightly decreased (-0.1%).