Friday, September 14, 2012

(-14.4%,YoY) Sounds like a crash!

Spanish Home Prices Fall Most on Record as Economy Shrinks

"The average price of houses and apartments declined 14.4 percent from a year earlier, the most since the measurement began in 2008, the National Statistics Institute in Madrid said today in an e-mailed statement. Prices fell 3.3 percent from the previous quarter"...... did someone say "BAIL OUT"? Note: "House prices more than doubled in the decade through 2007, before turning negative in the first quarter of 2008 and have since fallen by about 23 percent, data from the Ministry of Public Works show".

Posted by alan @ 11:35 AM (2487 views)
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16 thoughts on “(-14.4%,YoY) Sounds like a crash!

  • I could do with seeing some of those figures being showed on the British property market..

    I have just finished a book by called Ouch by Paul Knott, a good read on the financial world, house prices inc..very informative for me being a lay man at this financial stuff.. I Recommend 🙂

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  • leave me in suspense why don’t you.

    did it give any clue as to how on earth prices in the uk are defying gravity or is it like tulips and dotcom boom…at some point the penny just drops and the whole thing falls apart

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  • @2, Yes, as we all know QE, low IR’s, but cannot go on forever..Plenty of nice sound bites / quotes – probably an apt one is ” Buy land, they’re not making it anymore” Mark Twain.. Also plenty of graphs & charts, made simple to understand, the best bit of advice i got was, follow the tides, forget about individual waves, watch the tide..

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  • “Stock isn’t being reduced and some of it will never be sold because of its quality and location,” said Fernando Rodriguez de Acuna Martinez, a partner at Acuna & Asociados. “Some of it may have to be demolished in the future to stop the slide in prices.”

    Ah yes 25% unemployment, country needs a bailout, the whole thing is going t1ts up and the priority is to stop a further slide in house prices !

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  • not really much point in the huge amounts of repossessions in spain then

    why don’t these countriesraise interest rates to encourage saving and put the displaced into these empty properties after compulsary purchasing them

    its the people who are the economy who need bailing out so they can become more productive

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  • taffee (Friday, September 14, 2012 01:06PM) on the UK defying gravity topic I think the South-East (London in particular) is skewing the figures. Prices in the North of England and Norn Ireland for example are definirely retreating.

    taffee (Friday, September 14, 2012 02:44PM) – probably another item to boost Mr Wadsworth’s LVT argument

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  • @6 agreed,agreed

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  • Prices in the North of England….are definitely retreating.

    Can confirm that. Whilst on my travels, spotted something that took my interest – so followed it’s progress.

    Won’t say where, but:-

    Asking Price: £325,000

    Went STC after about two months and finally (took about 4 months) came on LR,

    Completion Price: £265,000

    Read into that what you will, but there’s the 20% spread between asking and match that I’ve banged on about before.

    Incidentally I have my own criteria for valuing these things and put max 230k on it in current market. So getting there.

    Buyers must be firm. It’s your market, but you must assert it.

    Remember: You want to live in the place, but the Seller doesn’t. So who calls the shots on the price?

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  • The Market's Bucked says:

    Prices may not be falling significantly – but transaction levels are. The Estate Agents will eventually run out of cash and will have no option other than to advise vendors to drop asking prices in order to generate cash income

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  • When people would buy house to LIVE in, and not to speculate, this would never have happened.
    We need to go back to that situation!
    Prices will have to go down much, much further. And they will!

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  • @taffee

    “why don’t these countriesraise interest rates to encourage saving and put the displaced into these empty properties after compulsary purchasing them”

    The problem is the banks balance sheets are mark to make belief – when they dispose of these worthless properties then they have to strike the loss from their balance sheets sending them towards another bailout.
    That is why there are few repossessions, it makes no sense to the banks until they have sufficient capital buffers. They would rather let the houses fall down and in the future sell the plots as development land. This way they make more money.

    Same story here in Ireland – around 400 repossessions last year. No point repossessing houses otherwise there would be a 75% crash.

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  • Dill, what is your reason for secrecy about the location? It renders your post meaningless.

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  • Taff: “why don’t these countries raise interest rates to encourage saving and put the displaced into these empty properties after compulsary purchasing them?”

    Good plan. That’s half way to LVT (as jack hints). There’s not really much difference in practice between renting from council or crown estates and paying LVT.

    But a better plan is to have lots of homeless people, demolish perfectly good houses, try and keep prices up and subsidise landowners with taxes on incomes. Or at least that’s the majority view.

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  • @ righttoleech

    Since you enquire. The environs of Sheffield.

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  • thanks Dill

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  • cheshire area is well collapsing loads of prices being reduced and no buyers , speaking to a guy who did some work for me, he was buying a 50% share property as he could not afford anything else, for the 50% the bank would only lend him 50% of that, he had to borrow money from family for the deposit, so he now pays rent and a mortgage for the property and owes his family, yet this guy earns good money in his trade.

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