Spanish Property Boom Officially Over, Says Report
A recently published report from the Spanish Ministry of Housing reinforces the fact that the Spanish property boom is now over. The number of transactions involving resale properties is back to the pre-boom low, with sales having declined by 47% to 179,000 in the first nine months of 2008 compared to 339,500 in the same period of 2007.
The reduction is even more pronounced if you just look at transactions in the third quarter, when there only 45,400 sales throughout Spain.
Sales of new build homes have held up much better falling only 16% in the first nine months of 2008. Overall property sales in Spain have declined 33% year on year.
The international ratings agency Standard & Poors has predicted Spanish property prices will fall 30% peak to trough and added that it will be the worst property crash for Spain since the 1970’s. According to official figures prices peaked in the last quarter of 2007 and S & P don’t expect the market to turn around before 2010.
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