Deutsche Bank adds to the Government’s optimism and assures the housing prices in Spain will knock off the bottom in 2014. The German financial giant made the doomsday prediction after the report on evolution of the adjustment to the real estate prices in eleven European countries went public.
(…) “Our evaluation of the accessibility on the eurozone housing market shows the end of a considerable reversal” on the average level. “Comparing to its recent history [records], at present German market offers fair price-to-income relation. The Irish market can either touch the bottom or recover. In countries like Spain and the Netherlands, the process can accomplish in 2014” assumes the Deutsche Bank report.
The Bank reckons so because of the ratio between the family income and the property prices “are only 5 points over the long-term average. If the speed of the adjustment at the Spanish market continues, the value of 100 (the average) will be achieved in 2014” while the value of 80, the real recovery, will be achieved “in two or three years’ time”.
“In other eurozone countries, like France and Italy, more adjustments are likely to occure” since the drop of prices is expected, add the analysts.