The demand for housing will not recover until 2014

September 8, 2010 at 3:24 pm Leave a comment

..or so it says in a report issued by Bankinter. The report states that “housing prices in Spain could suffer a modest extra kick, of a maximum of 6% over the next three or four quarters,”. They will stabilize by 2013 and probably to pick up slowly at the end of the year or in 2014.

The bank states that the housing stock numbers approximately 900.000 units, a number that it’s unlikely to keep rising.

The expected recovery in the labor market and wealth generation will determine a cut of the housing stock by 50%. These possible circumstances would allow the reactivation of residential construction throughout 2014 and the possible reactivation of the prices

In an interesting metaphor, the report states that “the real estate sector has been in “a journey in the desert for three years in terms of demand and prices.”

Expectations of a sustained appreciation of the house, the ease of access to mortgage financing and other factors related to the business caused a very rapid growth of the housing stock in Spain than actual demand.



Entry filed under: For sale, Kinos, News, Real estate. Tags: , , , , , , , , , , .

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