The timid recovery of the Spanish real estate market has started to become noticeable in property prices.
Free-market house prices experienced their first quarterly increase in late 2014, according to figures released by the Public Works Ministry. There had not been an uptick in the market since early 2008.
Prices rose 0.5% in Spain as a whole thanks primarily to a surge in demand for existing homes, which now represent nearly two thirds of sales.
The value of existing homes grew 0.2% from the previous quarter, while the price of new homes retreated 0.1%.
Improved confidence in the economy, a wide spread belief that property prices have finally hit rock bottom and more readily available financing are all helping encourage sales in Spain, according to experts.
It has been widely reported that the summer months saw a recovery in the country’s property market with some seeing sales increase by 8.8% in June compared with the same month in 2013.
Lending also increased, up by 19% in June 2014 compared with June 2013 and there was also a slight rise in prices which saw a 1% increase in the second quarter of 2104, the first quarterly rise for six years.
Before the economic crisis 40% of mortgages were taken out by immigrants. This has now fallen to only 3%. The average age of buyers has also gone up. The percentage of buyers younger than 25 has fallen from 16% to 3%. When it comes to investors, the volume of foreign investments is constantly increasing and 2013 saw a 16% increase on 2012. It is not uncommon for 80% of an estate agent's client base to be foreigners. ...continue reading "Good expectations for Spanish housing market"
FromHuman Rights Watch. The Spanish government has failed to take adequate measures to avoid and alleviate the impact of the housing and debt crisis amid economic down-turn in Spain. Since the economic crisis began in 2007, banks have foreclosed on over 500,000 properties under a procedure that leaves individuals and families saddled with significant debt and no realistic pathway towards discharging their debt. Immigrants, women heads of household, women victims of economic abuse, and children are among the vulnerable groups affected by the crisis.
Spain’s social crisis around evictions and debt arise in a context of decades of government policies aggressively promoting home ownership and borrowing and inadequate efforts to ensure an appropriate and affordable stock of rental housing and sufficient investment in public housing. Irresponsible lending, unfair terms in mortgage contracts (such as exorbitant default interest rates), unscrupulous behavior by intermediaries such as real estate agencies, and the lack of oversight during the boom economic years contributed to the current situation. ...continue reading "Right to Adequate Housing in Spain"
Home prices in Spain fell 4% in May compared with a 10.4% drop recorded in May 2013, indicating that the market could be nearing the bottom. The data from the leading valuations company Tinsa index also shows that this was the lowest annual drop in May since 2008.
The biggest price declines were on the Mediterranean coast, down 7.9%, but even that was the slowest drop since 2010. Madrid saw the smallest fall at 3.3% and other large cities also saw smaller than usual price declines.
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