Longer crisis: Fall in mortgages and increase in repossessions
28 October 2010 @ 10:09
www.thespanishbrick.com
Spain will not recover from the property crisis in 2011 and not yet in 2012 and 2013 at least. Moreover, the most pessimists like the IMF forecast a long period of eight more years of crisis. The latest data does not give room to hope.
The mortgage market is getting tighter and tighter in Spain. The rate has dropped in four consecutive month since May 2010 compared with the same period of 2009. The fall in May was -2,9%, in June was -10,8%, in July was -6,8% and August -3,4%.
Repossessions are becoming a major problem. The direct effect of repossessions is that it enlarges even more Banks portfolio putting extra pressure on the market. During the 2010/1Q repossession reached a new peak since 2007: 27,561. Banks now have a repossessed property assets portfolio worth 20.5 billion euros.
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