Spain’s housing market continues to be a source of bad news — unless you’re cash-rich.
While many buyers who are still paying off their mortgages are in trouble, those who are all paid up can sit tight until the situation takes a turn for the better again.
At the same time, those people who can purchase a property without going in debt can find wonderful deals all over the place.
MADRID, Dec 18 (Reuters) – Spanish house sales dived by 36 percent from July to September compared to the same period of last year and housing starts sank by 49 percent, the Housing Ministry said on Thursday.
The ministry said 118,533 houses were sold in Spain between July and September compared to 186,504 in the third quarter of 2007. The number of house starts fell to 75,268 in the quarter.
Analysts say the spectacular collapse of a 10-year construction boom last year is driving hundreds of builders out of business and could send banks’ non-performing loan ratios towards 9 percent.
Spain’s house builders account for a third of Spain’s 1 trillion euros ($1.44 trillion) of corporate debt. ($1=.6955 euros)
- Source: Ben Harding, Reuters via The Guardian, Dec. 18, 2008
