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Fitch Believes Housing Prices Will Continue to Fall in 2014 & Hit the Bottom in 2015

21/01/2014 – La Informacion

Credit rating agency Fitch claims that the housing prices in Spain will keep falling down due to over-supply, the banks´sales with great discounts and Sareb´s operations, to reach the rock bottom level in 2015, when more favorable conditions will drive demand up. (…).

Moreover, Fitch believes that credit defaulting rate will continue to rise in short-term after the “strong rebound in 2013”, the job market dynamics will stay on weak level and mortgage volume still will be going down. (…).

In reference to the mortgages, the agency foresees meagre access to loans in 2014, caused by economic slowdown and deleveraging in banking sector. (…).

Talking about European performance, the situation on the real estate market improves or at least remains stable, especially in Ireland, Portugal and the United Kingdom. (…).

 

Original article: La Información

Translation: AURA REE