Words: Ashley Rigg
Published: 19th October 2009
Spain: The worst is over says Ministry of Housing
Despite price falls of 8% this year, the market is beginning to stabilize and now is the time to buy according to Spain’s Ministry of Housing.
Talk of a slump (in prices) is no longer fitting” said an official from the Housing Ministry during a press conference for the Ministry’s latest quarterly housing market figures. National average prices have fallen 8% over 12 months although the pace of the price falls
has eased in the past few months.
Not everyone agrees that the worst is over. A Reuters housing poll of Spanish and foreign-based economists found that on average prices were expected to fall 32 percent from their 2007 peak. So far they have fallen just 7% in nominal terms, according to the Ministry of Housing’s figures.
In the USA, where arguably there was less of a bubble than in Spain, property prices have fallen some 30 to 35% from their peak, making Spain’s adjustment look small in comparison. However, it is difficult to estimate the extent of actual price movements in Spain as the official figures are often not a
true reflection of what is really happening in the market.
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