At the moment banks are shifting stocks with deals such as 50 year mortgages at 0.90% interest rate, rent for 5 years at a subsidised level with options to buy, with all the rent paid returned on purchase. One bank Caja Habitat will sell you a property with nothing to pay for 3 years, no interest, no fees, nada. Of course people take these deals without consideration for the future when the cheap deal will soon be unaffordable. Folks just want somewhere to live. They don’t want to know about tomorrow when their mortgage rate could be in double figures.
I will agree that these sort of deals are ‘stimulating’ some sales.
and Zapatero was saying that prices have bottomed out. And as we all know simply because sales are up does not mean there will be (in general) a rebound in prices for some time to come.
And I know you all like to be cynical on SPI, but lets be realistic, if this was purely political manipulation don’t you think the figures would have been bumped up more? For example in January 2007, 83713 dwellings were sold (best month of 2007). Whereas this year the best month was July with 43838 dwelling sold. 2010 peek is still 50% (+/-) less than 2007 peek.