Reply To: Spanish property market 2008: soft landing or train wreck?

Spanish Property Insight Forums Spanish Property Forums Spanish Real Estate Chatter Spanish property market 2008: soft landing or train wreck? Reply To: Spanish property market 2008: soft landing or train wreck?

#77413
Anonymous
Participant
jp1 wrote:
So for those that have said they see a 70% fall possible. What this means is that prices will fall 20% below the value before the housing boom even started!! And that maybe mathematics wasn’t their strong point at school

You forgot something in your computations: you are talking about human beings not about robots.

Human beings have sentiments and the fear is one the strongests ones.
The fear alone can drag prices down by 20%. In the case of Spain, the fear will be a mass phenomenon when the banks are going to take control of abandoned properties and will sell them for pennys on the pound.

What overshoots on the way up will always overshoot on the way down.