Foros de la Plataforma por una Vivienda Digna

[Bender]

Homeowners with properties in Spain were yesterday warned of an impending house price crash, due to an oversupply of property and rising Spanish interest rates.

Shares in Spanish property companies and banks tumbled as much as 22 per cent in a day on fears over tumbling Spanish house prices.

The country has seen seven interest rate increases since December 2005 to 3.75 per cent, following a glut of construction activity.
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James Stuart, who sells property in Marbella in association with Savills, said yesterday that the market is experiencing "a major correction" after years of soaring house prices.

"In the 1990s we started off with a position of very little supply, and now we have got the reverse," he said.

The Organisation for Economic Cooperation and Development (OECD) warned earlier this year that house prices in Spain might be overvalued by as much as 30 per cent.

On the Madrid stock market yesterday, two major building companies, Inmobiliaria Colonial and Grupo Inmocaral, saw their share prices fall as much as 22 per cent and 19 per cent respectively. Colonial shares closed down 12.65 per cent and Inmocaral closed down 11.27 per cent. The worry over house prices hit Spanish banks because of fears customers will be unable to pay back their mortgages.

Spain is the most popular place for British people to own a second home. About 70,000 people in the UK own a property there. Spanish house prices averaged £187,000 in December. Homes are twice as expensive as in 2000.

http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/04/25/nspain25.xml
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La vida moderna
es nuestra condena,
las prisas,las penas,
y los pisos de treinta.

La Habitación Roja