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House Price Correction to Show 42% in 2015

16/12/2014 – El Economista

By the end of 2015, Spanish housing is expected to reach a 42% value drop-off counted since the 2007 peaks, portends property listing web site Pisos.com.

The projection matches other forecasts by the industry’s leading statistics providers like Tinsa which reports the average price of homes in Spain is currently settled on levels from before 10 years ago.

Another Decline of 8%

The adjustment in values have revived the real demand during 2014, and, as the web points out, prices will mark an 8% dip-down at the end of this year. However, 2015 is seen more optimistically.

‘After years of going through the floor, main indicators of the sector have started to steer upwards. Shy optimism reverberates in the 2015 forecasts as everybody wishes the poor numbers went out and balance returned to the market’.

Pre-Owned Homes

The real estate web site highlighted the existing properties as the main engine of the 2014 growth in the market. Trust in new housing is much lower, despite the fact that new building permits jumped for the first time since 2011.

During the third quarter, residential construction also showed the first quarterly rebound since the crisis broke.

 

Original story: El Economista

Translation: AURA REE