The Economist: Spanish Housing Overvalued by 10%

The prices of houses in Spain still shall come to an end with adjustment. According to “The Economist”, in the twilight of 2013 houses were overvalued by 10% in regard to the wages available for home. The number is by 20% smaller than the one estimated at the beginning of 2013.

Idealista.com echoes the data adding that Spain leads together with Italy in the price fall among the most developed countries in the world.

Calculation highlights that the Spanish housing declined by 5.3% last year, while compared to the maximum recorded in the first quarter of 2008 the drop-off equals to 30%.

If it comes to Italy, the 2013 witnessed 5.9% decrease and, in reference to the top score, the housing numbers depreciated by 12.2%. Similar sort of data is found in the Netherlands (…).

In order to present the data above, the weekly newspaper analized the long-term information about the relation between the rental price and wages.

According to the classification, New Zealand, Australia, the United Kingdom, Canada, Belgium or France set themselves among the countries with the most overpriced houses. (…).

 

Source: El Economista

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