viernes, 19 de julio de 2013

The price of housing continues in freefall

grafico-precio-vivienda
No surprises. The Ministry of public works has published Friday its statistics on the price of housing in Spain and the conclusions cannot be more obvious: the housing bubble continues by clicking little by little. As proof, the average free housing price dropped 7.6 per cent during the second quarter of the year compared to the same period of 2012 to 1.481,7 euros per square meter.

From those wonderful years of the housing boom in the first quarter of 2008, when prices exceeded the 2,000 euros per square meter, the price of free housing has become cheaper nor more nor less than a 29.5% and the trend only portends that the fall will continue even during several years. Despite the bulky figure, prick the housing bubble is still slow, very slow. In fact, in relation to the previous quarter, the value of free housing has only fallen 2.5%.

And it is that the reasons to wait and not venture out to buy a home have a lot weight today. Input, is more than evident the fact that the price of real estate follow down in the future, so as an investment is rather absurd. In addition, access to finance Bank seems quite complicated: simply, banks do not lend because they do not trust.

To make matters worse, loans granted now the banks are much more expensive because of higher spreads with those who try to avoid risks of non-payment. And all of this without forgetting that Ap'sareb is holding back the effect of falling prices, than the unemployment rate has been above 20% from 2010 and the future of young people, the main potential homebuyers, it seems quite bit hopeful.

Ultimately, this combination of circumstances lead us to clear a very black future where access to housing are not exempt of difficulties. The most sensible alternative is perhaps the rent. Not in vain, the offer is growing and the same prices have dropped considerably from their peak.

In the Blog Salmon | Definitive housing bubble prick going for long, buy homes with no mortgage, the new fashion , and the mortgage crisis has not just begun

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