The prices of Spanish property, which were taken over by banks and repelled, have fallen this year by 65 percent. In addition, there is a million new homes for sale and buyer. The prices of Spanish property, which were taken over by banks and repelled, have fallen this year by 65 percent.
In addition, one million new homes for sale and buyer is having difficulty to obtain mortgage loans. This emerges from a study by Fitch Ratings Inc..
The price slide refers to the value of the property as the loans were still operated.
The fall in value is more than twice as high as in official government data. By comparison, in Portugal, the prices of the transferred property to banks fell by 45 percent.
The Spanish property market suffers because the country has fallen into the second recession in three years and has an unemployment rate of 25 percent - the highest in Europe.
Fitch brings his latest study out five years after the bursting of the housing bubble in Spain. The country is currently setting up a so-called bad bank, which is to take the toxic real estate loans on the books of distressed banks.
"Believes Fitch that the factors that weigh on the Spanish property market will continue to deteriorate," the Madrid analyst Carlos Massip and Juan David Garcia enrolled in the study. "The gap between the initial assessment and the selling price reflects the troubled mortgage market. "This is characterized by high indebtedness of borrowers, limited affordability of mortgages and falling property prices.
This year's decline in the value of properties that are passed into the ownership of banks is the highest since the financial crisis began. On average, the price decline was at 50 percent since 2007, the Fitch analysts wrote. According to official government data, the Spanish property prices have collapsed since the high in 2008 of 25.5 percent.
The prices of real estate, which were taken over by the banks are lower because the banks make reductions in order to sell the houses and apartments and can relieve their balance sheets. Fitch foresees that banks have taken more than 200,000 properties in possession. There are also more than a million new buildings that are for sale.