Citi: Home Prices to Diminish by Another 10%

16/06/2014 – Expansion

Research analysts of Citi estimate that the housing prices in Spain may fall by between 5% and 10% more, marking another year of drop-offs and therefore ruling out the portended prompt market recovery.

A report drawn by the financial entity suggests the latest signs shown by housing supply and demand are “uncertain” in terms of stabilization and we may expect further price adjustment in the nearest future.

According to data provided by the OECD, the housing prices in relation with income and rent still stand at between 6% and 10% over the long-term average.

Citi also quotes the Bank of Spain´s findings stating that accessibility to housing has plummeted significantly since the cancellation of tax relief for home purchase at the end of 2012.

The report tells the positive figures in demand registered recently are likely to halt the abrupt price slump.

 

Original article: Expansión

Translation: AURA REE

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