The IMF Believes in Looming End of Price Adjustment

28/05/2014 – ExpansionPro

Senior economist of the International Monetary Fund (IMF) Paulo Medas said yesterday the end of housing prices correction in Spain “is very near”, however he reminded the sector “still requires a lot of work”. In his annual report on Spanish economy, he stated “we do not know whether the prices will fall further or not but everything points to the final bottoming-out of values”.

He underlined the unsold real estate supply load creates great pressure on the market.

In spite of all that, he told there are “positive” signs of emerging recovery for the property market.

Likewise, Medas reckons there is no jeopardy of new real estate bubble, even with the significant increase of foreign investment.

According to general director of Sociedad de Tasación, Juan Fernandez-Aceytuno, in terms of prices, the market will hit the rock bottom level in 2015. “The moment of touching the bottom is essential as then the transaction number will shoot up”.

During his hearing at the Madrid Real Estate Conference included in the SIMA programme, he indicated that the decisive factor for mortgages rebound will be the purchase of mortgage-backed securities and bonds.

 

Original article: ExpansiónPro (by Mercedes Seraller, Miércoles 28 de Mayo 2014, pp. 25)

Translation: AURA REE

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