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Spanish Banks Funding 24 Years Of Housing Supply

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http://ftalphaville.ft.com/blog/2011/06/09/589196/nomura-says-spanish-banks-are-funding-24-years-worth-of-housing/

Base case

How many houses will this portfolio of EUR 242bn produce? Making some assumptions on average house prices (we assume prices continue to fall over the next two years), time to construction and the value of land within the total value of a house, we estimate that this portfolio could mean as many as 3.6m new houses. Based on the current rate of sale of 150,000, (2011 annualising at 100,000 but versus c. 200,000 in 2010) and assuming all these houses are brought to market, we believe this implies some 24 years of supply. This calculation is a result of the different assumptions we have made, all of which could be made more conservative or optimistic. For example, were we to assume that the annual rate of new-house sales could reach 300,000; this would imply c. 12 years of potential supply versus the 24 years in our base case estimate. Conversely, assuming a rate of just 100,000 new-house sales per year would imply 36 years of supply.

E Viva Espana...........

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why would builders build 300,000 new homes when there are 24 years supply out there unsold?

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why would builders build 300,000 new homes when there are 24 years supply out there unsold?

Precios de las casas siempre suben, innit?

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Precios de las casas siempre suben, innit?

?como esta? ( 4 hours on me language course)

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<br />why would builders build 300,000 new homes when there are 24 years supply out there unsold?<br />

Faulty T-owe-rs?

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Why don't the banks just persuade the governmint to pay huge benefits to the jobless and immigrants? Then they would all move there and it would create jobs building more houses, shops would do well selling more food and goods etc and so more taxes would be generated to pay for the benefits.

What could go wrong?

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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