6/06/2014 – Property Wire
As the IMF economists claim, the slump haunting the Spanish property market has started to show mercy, as well as the terrifyingly high, 26% unemployment rate.
A study released recently by the Fund also states that in spite of the powerful crash, Spanish economy is recovering at the fastest pace since 2008. Thanks to the labour reform, the number of jobs increased by 200.000 in April in year-on-year terms.
The report´s author, James Daniel denies seeing any new real estate bubble for the nearest future.
As per another analysis conducted by Spanish Property Registrars, in the first quarter of the year over the last one of 2013, home purchases rose by 14%. There were 83.022 sales registered during that time, out of which 37.731 were new units and 45.291 were used. Still, year-on-year, the sales declined by 18% in the first case and by 8.22% in the second.
Althought the fact that there have been almost no new houses being constructed during the recession might be for some worrying, the study calms down: “Prior to that, the unsold and the repossessed stock must change hands”.
Both sales and values went up, the next phenomena affirming the market recovery. Yet one shall not forget about the slight (2%) improvement in lending. The lent amount shot up 16% since 2007.
In the first quarter, property purchase tapered out 45% if compared to the same period a year earlier.
“Housing prices are to inevitably rise in 2015 as this year they are bound to bottom-out“, explained Raj Badiani from London-based IHS Global Insight.
Original article: Property Wire
Summary: AURA REE