SPAIN’S house prices have suffered their most severe drop since records began, according to official statistics.
Prices fell 12.6 per cent year-on year for the first quarter of the year, beating the previous worst figures of 7.7 per cent recorded in the second quarter of 2009.
Property prices have already been slashed by up to 30 per cent since the beginning of 2008, with a further drop of 25 per cent predicted before the market begins to recover.
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Rund Abdelfatah
Tell the Spanish lady in my village who wants a quarter of a million Euro’s for a very ordinary 3 bed house:)
Peter, if she’s a typical Spaniard, the longer the house remains unsold the more she’ll raise the asking price.
Yes I agree they get the concept of price to sell and it’s only worth what someone will pay. But can you explain to me the spanish psyche why do they hold out with no income from the house? what are they thinking? confused.
Planky, the answer to your question is that Spain is basically a Banana Republic hidden in the middle of the EU, were the ordinary people know they have no rights, the rights belong to the feudal corrupt political class and their band of willing thieves (industry and bankers) so their form to protect themselves is mostly negation and the least amount of exposure to any possible problems……
In japan they call it “seppeku” on honorable suicide by disembowelment with a samuri sword. I think the spanish are doing something similar with their f-u got to go get my tappas, siesta, closed on Sunday attitude but not sure it’s honorable?
Planky
Planky – although a vast banking conspiracy is a satisfying explanation, just as satisfying as “the Spanish are lazy and self-destructive,” the real one is a bit more simple.
If a person buys a house on credit from a bank for 150,000 and now the market value of the house is 90,000 then they will end up owing the bank money if they sell the house. It makes more sense to default and let the bank take the house than to sell for less and owe the bank a large sum.
If you want to take advantage of the housing market you need to seek out houses that are owned, not mortgaged. Alternately, you should consult directly with the banks to see their lists of foreclosed houses. That is where you will find the bargains. Individuals selling houses usually owe money to banks and they cannot afford to sell the house for less than they owe. Thus you have individuals asking prices for their homes that are far above the market.