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Spanish housing market still contracting

The Spanish housing market is still deflating after its bubble burst, as I have had to report month after month.

There were 19,129 home sales in April (excluding social housing), 9pc less than a year ago, and 13pc less than the month before, according to the INE. Monthly sales this year have been the lowest since the crisis began, as illustrated by the chart above.

Year to date (4 months), the market is down in volume terms 25pc on last year, and 64pc on 2007.

Factor in average price falls of 30pc (my estimate), and the Spanish housing market has collapsed by 75pc in value since the peak.

The housing market was the central pillar of Spain’s economic boom, which helps explain why Spain is now in such economic trouble, with unemployment around 25pc and a sovereign bailout round the corner.

The following table summarises all the key housing market transaction data over the last 6 years (click to enlarge):


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