Interesting Article

Dated 30 Sept 10

According to the National Institute of Statistics, sales of new homes here in Spain rose by a massive 21% in the last year, now accounting for a higher proportion of sales than resale property. The overall figure – a rise of 15% year-on-year to July, with 38,838 sold – would seem to indicate that the Spanish real estate market has turned a corner.

Of course, in normal times you would expect sales of resale homes to far outstrip sales of new properties, due to their relative numbers in the economy. But a combination of oversupply and banking desperation means that the figures are currently skewed markedly towards new homes.With the banks owning much of the stock and actively trying to offload it, they hold all the cards at the moment; a position strengthened by the fact that the banks ultimately have the say on loan approvals for all home purchases (including resale property).

Rod

www.ournextholiday.co.uk

Rod, the reality is that these new property sales are NOT real sales.  These are the banks completing on the thousands of mainly finished apartments that they have had to take back as the developers have been unable to pay their debts back to the banks.

All these completions are the banks completing on their own properties, they are not real sales.

Banks are only selling finished and completed properties, so this is why those statistics mean nothing really.  The banks still have to sell all of those thousands of properties on.

Unfortunately we are still a long way off from seeing any sort of improvement in the property market.

Justin