The collapse in property sales will continue “for some time to come” said Pedro Solbes, Spain’s Finance Minister, reported by the Spanish news agency Efe. He also admitted that the Spanish economy came to rely too heavily on residential construction, which has led to a housing glut.
The Spanish property market shrank by 29% in 2008, with resale transactions down a whopping 39%.
Scratching around for any sign of good news, some analysts note that the decline in property sales appeared to stabilise at around -30% in the last few months of 2008. Hardly great news, it may also prove to be temporary, as the credit crunch deteriorates into a new phase in 2009.