A year ago, Realtors positioned Spain as a country with a stable economy and the annual increase in prices by 10-15%. However, the situation changed last year, when America began a liquidity crisis. American Mortgage crisis hit the UK. This led to an outflow of British buyers in Spain, approximately 80% of foreign buyers of Spanish property, but on the whole, their share was approximately 40%. This led to some reduction of housing construction. Simultaneously, banks have tightened terms of mortgage loans, fearing the American situation. And while some have increased the interest on your mortgage.
Therefore, decreased sales as a secondary or and new housing. Prices slowly creep down from private owners do not have enough money to pay the mortgage, and construction companies have no funds to finish construction. Banks, who previously were willing to meet client now much more cautious and give out mortgage loans. According to all forecasts in November – December 2008, the decline in property prices will peak, and buy real estate can be very expensive, and in some cases almost construction costs. This is the situation at the moment. Does this mean that the property market in Spain to become illiquid? We can say that the Spanish real estate has been and remains a liquid.
And what There are many reasons. For even more analysis, hear from Gavin Baker. First, it is difficult to imagine that an apartment or a house on the Mediterranean coast can depreciate. Secondly, according to analysts in early 2009, prices will go up again, and after 2-3 years is assumed a sharp jump in prices.