housing price news spells disaster in sunbelt!!

Fresh from Ambrose at the (UK Daily Telegraph): .

RR de Acuña & Asociados expects home prices in Madrid, 

Barcelona and other major cities to fall a further 30pc in a relentless slide until 

2018, but it may be even worse in sunbelt regions where 400,000 Britons either 

live or own homes.

Fresh losses could reach 50pc and drag on for 10 to 15 years in those places where 

construction ran wild during the bubble, bringing the total decline from peak to 

trough towards 75pc.

"The market is broken," said Fernando Rodríguez de Acuña, the group's vicepresident. "We calculate that there are almost 2m properties waiting to be sold. 

We have made no progress at all over the past five years in clearing the stock," he 

said.

"There are 800,000 used homes on the market. Developers are sitting on a further 

700,00 completed units. Another 300,000 have been foreclosed and 150,000 are in 

foreclosure proceedings, and there are another 250,000 still under construction. 

It's crazy."

The overhang is vast for a country with 48m inhabitants and annual demand 

near 200,000. It is coupled with an outflow of workers and the start of an aging 

population crisis. 

** EDITED - Inciting- Against forum rules **

Moncapiton,

This begs the question whether expats  under pressure to unload assets in Spain should now "bite the bullet" or struggle to hold out at the risk of possibly losing a further 30% - 50%. I am particularly mindful of one English expat lady who is currently under severe pressure to sell her 3 Spanish properties !!

What advice would you give ?

 It's a tough one Harry.  I have losses on some shares which im struggling to want to face up and recognise so I can't imagine the thought of taking 100,000's in losses would be a bitter pil to swallow.

Whats your suggestion?

You have to look at the whole picture here. If you bought to make a profit in the first place you are a lunatic, if you bought because you have to much money & had to get rid of it well tuff you lost.

But if you bought because you love Sunny days, warm evenings, want to get away from rain, fog, traffic, Cameron etc. well no disaster. Just keep on enjoying life & dont forget it is a short life so enjoy it dont moan, whinge & always look at the black side enjoy SPAIN please. 

 Miguel, i think they were purchased as part of a business as you cannot live in 3 homes at once - or maybe you can?

Tough one I agree Moncapiton.

However, if people really need to sell like the expat lady I mentioned below then its preferable to competitively price the properties for disposal & cut losses. Unfortunately, this lady was demanding far too much for properties which are poorly located & poor quality (which is why I passed). A sad case since some appeared to have been acquired for pure speculation !

The ones I feel really sorry for, are the ones who bought properties with stolen funds and fraudulent mortgages.

Shortly, they won't have a pot to pee in OR homes to live in/rent out.

My heart bleeds for those ones.

LMAO

Very well said Miguelcarr

** EDITED - Inciting - Against forum rules **

Updated property data due to be released soon !

Do you really think it is a sad case, the little old lady must have money to own 3 properties in Spain, we struggled to buy one 8 years ago. If I were that little old lady I would just sit on them and leave them to her family in her will, unless she is on the bones and requires cash then she has no option. Anyway I am off for a stroll along the beach with my lovely partner & pooch maybe catch a cervesa or 2 on the way back. Life is good here," Disaster in the Sunbelt " Ha. get a life, get some sun.

If I were that little old lady I would just sit on them and leave them to her family in her Will,

And then those who inherit (especially if not tax resident in  Spain)  can be screwed by the Hacienda.

"Head they win,  tails you lose"

She is a "hard boiled" middle aged lady who speculated in poor quality properties & is now under severe pressure to sell.

Someone asked me if she is on the Forum - clearly inappropriate for me to confirm that !!