House prices still falling

[spaceman]

I came across the artice quoted below regarding house prices.
Good news for buyers i suppose, not so good for sellers.

"Home prices in Spain will drop by 10 per cent this year and 12 per cent next year, and by 2012 will have plummeted an accumulated 30 per cent from the time the real estate boom ended in 2008. That, at least, is the prediction offered last week by BBVA bank's research and analysis department.

The report, which is grimmer than the bank's previous forecasts, does include one positive note: the dropping prices, combined with falling interest rates - which it predicts will hit 0.5 per cent by the end of this year - mean that the housing market will become more accessible to potential buyers than it has been in 20 years.

The BBVA report puts the number of unsold homes in Spain at 1.2 million, more than double the figure offered by the Spanish Association of Developers (APCE). The overstock will not begin to be absorbed until well into 2010, and will then gradually diminish, not returning to 2005 levels until the end of 2012, it says.

A report last week from another group, the College of Property Registers, confirmed that the decline in the number of house sales continues but suggested that the drop in activity may be levelling off. It showed that the number of residential real estate transactions was down 33 per cent in the first quarter of this year compared with the same period last year. However, the drop between Q4 of 2008 and Q1 of this year was 2.75 per cent, "much less dramatic than in previous quarters," it said."

Spaceman

[jojo]

Originally Posted by spaceman

I came across the artice quoted below regarding house prices.
Good news for buyers i suppose, not so good for sellers.

"Home prices in Spain will drop by 10 per cent this year and 12 per cent next year, and by 2012 will have plummeted an accumulated 30 per cent from the time the real estate boom ended in 2008. That, at least, is the prediction offered last week by BBVA bank's research and analysis department.

The report, which is grimmer than the bank's previous forecasts, does include one positive note: the dropping prices, combined with falling interest rates - which it predicts will hit 0.5 per cent by the end of this year - mean that the housing market will become more accessible to potential buyers than it has been in 20 years.

The BBVA report puts the number of unsold homes in Spain at 1.2 million, more than double the figure offered by the Spanish Association of Developers (APCE). The overstock will not begin to be absorbed until well into 2010, and will then gradually diminish, not returning to 2005 levels until the end of 2012, it says.

A report last week from another group, the College of Property Registers, confirmed that the decline in the number of house sales continues but suggested that the drop in activity may be levelling off. It showed that the number of residential real estate transactions was down 33 per cent in the first quarter of this year compared with the same period last year. However, the drop between Q4 of 2008 and Q1 of this year was 2.75 per cent, "much less dramatic than in previous quarters," it said."

Spaceman

I think they are still dropping, altho there are one or two really nice places that are going, cos there still seems to be a demand for "the right places"!! Until they sell some of the 1000s of apartments built along the costas tho, I cant see things going back up in value across the board

That said, there is a school of thought that feels house prices in Spain were artificially high due to the mad influx of expats here a few years ago and now the balance is being redressed and local youngsters may actually stand a chance of being able to afford to buy soon!

Jo xxx

[rotarise]

Well sad to hear the housing situation is like that here..i moved from the USA and it was just horrible there i cant even explain..i even knew some friends had to have there house forclosured...it was normal to drive by nieghborhoods once flourishing with people to see eveybody inside and some house on the blocked boarded up with grassing growing wildly. and President obama was giving a $8,000 first time home buyer credit just to fill in some of those forclosured homes...i applied for the credit but then did not go through with it since i decided to move to spain with my family.