the olive press
Search:
Spain's best English daily news website
Sunday, November 23, 2014
Subscribe: RSS or Email

Prices of repossessed homes in Spain fall 65%

PUBLISHED: December 18, 2012 at 2:42 pm  •  LAST EDITED: December 18, 2012 at 2:53 pm
Lead, National News  •  2 Comments


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.

Did you like this? Share it:



Reader Comments »



david rowe spain

December 20th, 2012 11:54 am

There are 1000s of empty properties in Spain, It is going to take years for the market to start coming back.

Reap

December 24th, 2012 2:26 pm

Is Rhonda included???!!!




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]


 Back to the Top








Read Our Latest Print Edition »

Read More Olive Press Back Issues Online »