House prices in Spain could fall by 12 per cent
June 2nd, 2010 - Chris Marshall
I previously wrote about how if property was going to be a good investment in Spain then the property prices in Spain needed to fall, and that it all seemed somewhat confusing as far as property prices in Almerimar went
Yesterday I was talking to a local estate agent who said that at the moment only two things were really happening: the English were selling their properties as they could undercut the Spanish because of the exchange rate, and the Spanish were the only people buying, but as residential not holiday homes.
It was therefore interesting to read that the the Spanish property market crash has not yet hit bottom. The Standard & Poor’s rating agency believes that the country is still “a long way to go,” and that prices could still fall another 12%.
The authors believe that “the massive stock of supply” of housing (around a million homes, according to some estimates) should have caused a greater fall in prices. In any case, since the creation of new homes has fallen to about 300,000 a year, “will take several years to absorb the excess.”
