- OP Xtreme
- Business & Finance
- Crime & Law
- Food Drink
- News Features
- Insurance Doctor
- Jack Gaioni
- Legal Issues
- Loud and Clear
- Market Mumbles
- Mistress of Sizzle
- Property Insider
- Road to Riches
- Eating Out
- Andalucia Property Search
- Green Guide Spain
Prices of repossessed homes in Spain fall 65%
• Prices of homes seized by the banks have fallen sharply
Do you have news for us?
Click to contact the newsdesk!
PRICES of repossessed homes sold by banks in Spain have fallen 65% this year, according to a report by ratings agency Fitch.
The drop represents the sharpest decline in prices since the financial crisis began and suggests prices have fallen more than twice as much as government figures show.
The decline is relative to the property’s value when the initial loan was granted, with the average price of repossessed homes having fallen 50% since 2007.
“Fitch believes that the factors weighing on the Spanish residential property market will continue to deteriorate,” the report states.
“The gap between original valuation and the sale price is a reflection of a distressed mortgage market, characterised by high borrower indebtedness, constrained affordability and falling property prices.”
More than a million new homes remain unsold in Spain, while Spanish banks have seized more than 200,000 residential properties, leaving the market saturated.
On top of this is the increased difficulty buyers are facing when trying to obtain a mortgage.
According to the Ministry of Public Works, Spanish house prices have fallen 25.5% since the 2008 peak.
Reader Comments »
The views expressed in the comments above are those of our users and do not necessarily reflect the views of the Olive Press.
Messages will be moderated or deleted if they:
• Are considered likely to disrupt, provoke, attack or offend others
• Are racist, sexist, homophobic, sexually explicit, abusive or otherwise objectionable
• Contain swear words or other language likely to offend
• Break the law or condone or encourage unlawful activity. This includes breach of copyright, defamation and contempt of court
• Advertise products or services for profit or gain
• Are seen to impersonate someone else
• Include contact details such as phone numbers, postal or email addresses
• Describe or encourage activities which could endanger the safety or well-being of others
• If you have a complaint about a comment please email [email protected]