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dryrot

Spain 926.000 Stock Of Unsold Homes

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Hi

just a passing stat from this article "European bank jitters as Spain steps in to save Cajasur " at:

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7757398/European-bank-jitters-as-Spain-steps-in-to-save-Cajasur.html

"The collapse of Cajasur is likely to revive fears over the health of Spanish banks, which skirted the US subprime crisis but are succumbing to local property busts. Cajasur is heavily exposed to second homes on the Costa del Sol, where prices are in free fall. Goldman Sachs said Spain's property companies have debts of €445bn, or 45pc of GDP, mostly owed to savings banks known as cajas. The stock of unsold homes reached 926.000 at the end of last year.

But "Santander [and BBVA], are in good health." it continues.

Well that's fine, then

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traders must have the brains of goldfish.

jitters revived??

maybe they forgot everything was sh1t just yesterday.

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traders must have the brains of goldfish.

jitters revived??

maybe they forgot everything was sh1t just yesterday.

Don't be so harsh. Goldfish are nowhere nearly as stupid as you make them out to be.

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Don't be so harsh. Goldfish are nowhere nearly as stupid as you make them out to be.

:lol:

at least they live in bowl of liquidity....goldfish that is.

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If they had some water and immac/veet I would move there, buy a house and spend my days seducing Swedish women on holiday.

:unsure:

Sounds an excellent plan.

What's to be unsure about?

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Sounds an excellent plan.

What's to be unsure about?

I don't believe that Spanish women are aware of immac/veet - I would be totally dependent upon a regular supply of Swedish and Norweigan women... and I hear they now target West African states for their 'interesting' holidays.

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If they had some water and immac/veet I would move there, buy a house and spend my days seducing Swedish women on holiday.

:unsure:

t`is the other way round I can assure you :)

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The stock of unsold homes reached 926.000 at the end of last year.

Thats the Spanish government figure, which is an outright lie. The real figure is over 2million.

Spain is fabricating its statistics, on unemployment and house prices falls for example.

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Are these vacant new builds or just the total housing units that are up for sale?

There must be a million 'unsold' properties in the UK.

How many have title of little worth, how many have been illegally built, how many could be demolished at the flick of a local council's whim, how many could put their owners under duress to pay extortionate taxes/fines conveniently hidden form the purchaser.

Amazing that Spain thinks it is OK to be very visibly running so many bent housing markets and still expect expats to buy - guess what when the tide is out and they would really welcome some external funds slushing round their ankles all of the above acts as a massive disincentive to touch spanish propeorty with a bargepole, let alone the "normal" risk of buying in the face of a collapsing bubble.

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I don't believe that Spanish women are aware of immac/veet - I would be totally dependent upon a regular supply of Swedish and Norweigan women... and I hear they now target West African states for their 'interesting' holidays.

Gordon Bennett! What's Swedish for 'risk analysis'?

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The stock of unsold homes reached 926.000 at the end of last year.

When I was in Oviedo a few weeks ago I noticed that flats, even on the outskirts of the city where near enough zone 2/3 London prices. The region suffers about 20% unemployment and most young Spanish people have to stay with their parents because they can't afford a home, even the one's with good jobs.

What a fine mess indeed.

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When I was in Oviedo a few weeks ago I noticed that flats, even on the outskirts of the city where near enough zone 2/3 London prices. The region suffers about 20% unemployment and most young Spanish people have to stay with their parents because they can't afford a home, even the one's with good jobs.

What a fine mess indeed.

I suspect that prices are still sticking at the high end. What is the Spanish equivalent of RightMove? I'd like to do some research.

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Thats the Spanish government figure, which is an outright lie. The real figure is over 2million.

Spain is fabricating its statistics, on unemployment and house prices falls for example.

You are quite correct!

Add 500,000+ "new starts" since then and over 20% price falls even back in 2009

Nov 12 2009

http://www.nuwireinvestor.com/articles/conditions-worsening-in-spains-real-estate-market-54048.aspx

"The number of unsold properties in Spain now exceeds 1.5 million, according to a report by R. R. de Acuña & Asociados, a Madrid-based real estate firm, including 1.1 million unsold newbuild flats and houses, and roughly 518,000 second-hand properties. Around 327,350 units are under construction. The housing glut is most severe on the coast and in areas around Madrid.

Housing construction continues to contract. Housing starts dropped to 297,000 for the period from June 2008 to 2009, 47.6% lower than the same period last year."

The words "Goldman Sachs" popped into the 'equation' - so are the math 'real' or 'adjusted' for the eyes of the Grecian Gods of Goldman?

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adding the existing to the current build gives ~1.4M , and if the property companies

have the debt for those then that gives ~320k euros per property - seems a lot ?

rockhopper

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Thanks. I don't see a fire sale going on, eg. in Costa del Sol.

The problem is that its very difficult to get a idea of real prices, government/real estate figures are faked. You should probably knock off 30% from advertised prices, but nothing is selling. I would like to buy in Spain, but illegal builds, and new taxation (to reduce Spain's deficit) make it a very bad idea. There is at least seven years supply of unsold housing stock in Spain (at average annual selling rates - which are not happening).

Spain will have to devalue its currency by 30% relative to German to recover its economy (its structurally un-competitive) - so a split with the Euro for either is probable.

So don't consider buying in Spain until after the devaluation.

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You are quite correct!

Add 500,000+ "new starts" since then and over 20% price falls even back in 2009

Nov 12 2009

http://www.nuwireinvestor.com/articles/conditions-worsening-in-spains-real-estate-market-54048.aspx

"The number of unsold properties in Spain now exceeds 1.5 million, according to a report by R. R. de Acuña & Asociados, a Madrid-based real estate firm, including 1.1 million unsold newbuild flats and houses, and roughly 518,000 second-hand properties. Around 327,350 units are under construction. The housing glut is most severe on the coast and in areas around Madrid.

Housing construction continues to contract. Housing starts dropped to 297,000 for the period from June 2008 to 2009, 47.6% lower than the same period last year."

The words "Goldman Sachs" popped into the 'equation' - so are the math 'real' or 'adjusted' for the eyes of the Grecian Gods of Goldman?

thx for this (and Peter Hun). I though 960k was a mad figure.... But I was naive :)

Also http://www.housepricecrash.co.uk/forum/index.php?showtopic=143694&st=15

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When I was in Oviedo a few weeks ago I noticed that flats, even on the outskirts of the city where near enough zone 2/3 London prices. The region suffers about 20% unemployment and most young Spanish people have to stay with their parents because they can't afford a home, even the one's with good jobs.

What a fine mess indeed.

I know Asturias and Ovideo well, a lovely City, but these apartments are not just there, they blot the landscape of most dead beat towns in Asturias, Cantabria and Galicia, I'd compare it to somebody going construction mental in Welsh valleys. Unless you see them, you can't imagine how incongruous they look. Considering the wage/employment problems, not to mention declining population, asking prices sales/rents are still high, incredibly so, and so they sit, empty or half finished, it's madness.

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  • 149 Brexit, House prices and Summer 2020

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      • down 5% +
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