[SPI News]

Juan Fernández-Aceytuno the Director of ST-Sociedad de Tasación, a Valuations Company, estimates that the price of new housing of all types in Spain has fallen by 45-47% since its peak, slashing its value almost in half.

Fernández-Aceytuno doesn’t discount the possibility of there being further price reductions due to the fall in families’ incomes, high unemployment and difficulty in securing finance. However, he does believe that the increasing speed of the fall in prices is a symptom of the market getting closer to bottoming out.

Juan Fernández-Aceytuno, Director of ST-Sociedad de Tasación

[angie]

With such large drop in values does this indicate that new housing was just plain over-priced in the 1st place, and, how many people have unfortunately paid way over the odds are now nursing large losses, presumably many are in negative equity too? You’d be pretty peed off knowing that you’d paid double what your new neighbour might pay 🙄

Is there any comeback on Banks etc if those institutions overvalued for mortgage purposes or would they say ‘those were the figures then’ and ‘this is now’? 🙄

[angie]

With such large drop in values does this indicate that new housing was just plain over-priced in the 1st place, and, how many people have unfortunately paid way over the odds are now nursing large losses, presumably many are in negative equity too? You’d be pretty peed off knowing that you’d paid double what your new neighbour might pay 🙄

Is there any comeback on Banks etc if those institutions overvalued for mortgage purposes or would they say ‘those were the figures then’ and ‘this is now’? 🙄

[Author]

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