24/04/2014 – Expansion
The worldwide known rating agency claims that the prices of houses will continue their free-fall, however not so abruptly, to land on the rock bottom level in 2015. Once that happens, the prices will mark 40% less than their maximum levels.
According to Fitch´s latest report on mortgage market in Spain, the main culprits for the slump is the excess of stock and the intensive sales of banks and Sareb.
The agency recalls data published by the INE (Spain´s National Institute of Statistics) which reveals that the prices declined by 1.3% in the last quarter of 2013, in spite of slight rebound in the third quarter.
Likewise, it refers to data from the Ministry of Development, according to which in the fourth quarter of 2013 the prices fell by 30.2% in comparison to their historically high levels. Fitch itself estimates that the slump was equal to 37%, the INE agrees, while Tinsa says the drop-off was of 38.5%.
On the other side, the rating agency points at the slow loan redemption process in Spanish households that will persist up to 2015.
It also adds that in spite of the fact that unemployment rate is falling and is to stop at 25.5% in 2014, the 2012 reform on salaries will hamper many people to pay their debt off.
Original article: Expansión
Translation: AURA REE