6/06/2014 – Expansion
According to rating agency Fitch, the economic growth and cut in unemployment rate will influence housing prices in long term. Though, they will not hit the bottom before the end of the year.
However, Fitch points at the large number of unsold stock and weak demand caused by slump in purchasing power, lending cost and unemployment rate.
Report released by the agency states the 80% fall in new mortgage signing registered since the maximum in 2007 has not been reflected in price development. In March, the signing rebounded for the first time in four years by 2% on year-on-year basis.
Fitch foresees that at the moment of reaching the rock bottom level (not earlier than at the end of 2014), acummulated fall will show 40% since the maximum level.
Original article: Expansión (after Efe)
Translation: AURA REE