FT - forecast of further 15% drop in Spanish property prices

Interesting article in the FT this week regarding the Spanish property market. Main points were:

- house prices in August were down 6.8% year on year;

- Nomura is forecasting a further 15% drop over the next two years;

- this is driven in large part by the vast housing stock now held by the banks (their attempts to shift the stock they hold will continue to depress the market).

As always, there will be high regional variations either side of these average figures.

 At this rate, our mortgage payments will be more than the value of our property .

Mark

This is depressing news for anyone trying to sell.

Dear All,

if these modest figures are averages for the national housing stock they are more or less meaningless to any ex-pat who is in difficulties.

when does depression become suicidal?

Regards

Norman

 As soon as claims against the Banks finally consolidate, they will not be in that dominant position within the real estate industry anymore.

- Claims by individual buyers: enforcing Bank Guarantees, effecting general Guarantees and using provision 1segundo of Law 57/68

- Claims by developers : on breaches of financial agreements between them two.

The expected formula for claims: buyers and developers togethers vs Banks is being the perfect mixture for advancing on Market balancing.

We are helping developers in our mission to help buyers and try to organise a more balanced market. It is being a huge effort!

Piltonian - do you have a link to the article?

Well the PM took a 36% cut, so what is the correct figure?

http://www.simplynetworking.es/news-8410-31-even_president_zapatero_lost_out_when_the_property_bubble_burst.html