Under the conditions of oversupply in the property market of the country Spanish sellers cut prices to a critical minimum. But all to no avail: the demand continues to fall, mortgage lending decreases.
According to the statistics of one of the leading portals Spain Idealista.com, in November, more than 26 thousand real estate sellers have reduced the stated price by 15% compared to the previous month. In just one month the average price of a property fell by more than? 24 thousand and the total value of all the offerings on the market decreased by? 631 million, according to Spanish Property Insight.
In general, during 2010 more than 80% of sellers have dropped prices, and sell real estate Spain fell a total of? 4.7 billion (5.7%).
According to experts Idealista.com, the massive reduction in the stated price - is a desperate attempt by merchants to attract customers before the end of the year, as in early 2011 the authorities are going to cancel privileges on payment of mortgage collection, which will further reduce the purchasing activity.
Despite the fact that the benefits still exist, mortgages in Spain make out all the lower as demand for homes continues to fall. In October 2010 the number of loans fell by 24% compared to the previous year in the same month, reports Bloomberg referring to the National Statistics Institute of Spain.
The total amount of mortgage loans in October dropped by 33%, experienced the largest drop since last October. The number of sales transactions during the same period decreased by 18% - is the biggest decrease since the beginning of statistics.
Spanish banks, who need to dispose of surplus property alienated, counting on a speedy recovery in demand. However, according to independent analyst Mark Staklina even greater demand in the future (or some other positive developments) are still not be considered as a sign of market recovery, which in his opinion, is still in deep crisis.