The four years since, from April 2007, prices began to fall in home sales ads lead to consider the duration and consequences of an adjustment fails to appear, then, in the first quarter year, housing prices (advertising and appraisals) have accelerated their decline, while employment continued to decline in construction.
The adjustment will have to dispose of the huge existing stock homes in search of buyer. If new and used homes for sale are added those others under construction and planned, this stock is well over two million. This excessive supply meets demand today with a scrawny, whose speculative component and tourism has been deflated with the crisis, with expectations of revaluation.
addition, the effective demand for housing in our homes ( the most indebted in the EU) accused both the immigrant population decline, as new applicants (25 to 45 years), particularly affected by unemployment and social and wage cuts. In this context we note the unusual action of a Minister of Public Works and socialist declaring that, rather than take the opportunity to rebuild the housing stock almost disappeared social, and commercial travel around the world offering homes to "investors" from distant countries.
The duration of the adjustment depends on the flexibility and transparency in real estate prices. This is where the lack of information on market prices and valuation of housing stock in the hands of banks, savings and mortgaged promoters with inflated appraisal prices are delaying the setting.
thus misleading discrepancies assist between the fall of 14.8% of the appraised price, the 24.5% of ad pricing and most of the actual prices charged for sale and auction. The fact that Caja Madrid has awarded its "bad bank" the huge tower located in the former Ciudad Deportiva of Real Madrid, who bought and valued at prices well above current illustrates the desire to sneak economic losses that characterizes current real estate troubles.
(*) José Manuel Naredo is an economist and statistician
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