Home sales fall in SpainAugust 11th, 2011 - 11:01 am ICT by IANS
Madrid, Aug 11 (IANS/EFE) Home sales in Spain fell in June by 7.7 percent from the previous month and by a whopping 22.9 percent compared with June 2010, authorities said.
Sales of existing residences accounted for 51.3 percent of the 28,612 transactions concluded in June, which was the fourth consecutive month of inter-annual declines, the National Statistics Institute, or INE, said Wednesday.
Spanish unemployment remains above 20 percent as the country’s economy struggles to emerge from the dual shock of the global recession and the bursting of a decade-long property bubble.
Home prices in Spain have fallen to levels last seen in 2005, international real estate valuation firm Tinsa said in a report released in May.
The sharpest drop in housing prices, 8.1 percent, was registered in communities on Spain’s Mediterranean coast, while prices in major cities and provincial capitals fell by an average of 6.7 percent.
An increase in mortgage interest rates was one of the factors exerting downward pressure on home prices, according to Tinsa’s Index of Spanish Real Estate Markets.
Tinsa also blamed the elimination of the sales-tax exemption on housing purchases for people earning more than 24,000 euros ($35,000) a year - which took effect Jan 1 - and the failure of incomes to keep pace with the cost of living.
- Housing prices dip in Spain - Mar 16, 2012
- Spanish economy shrinks - Aug 29, 2012
- Downward revision of Spain's GDP data - Aug 28, 2012
- Bankruptcies remain at record level in Spain - Aug 07, 2012
- Spanish economy slowed in second quarter - Aug 07, 2011
- Spain sells 3.2 bn euros in bonds at higher rates - Apr 18, 2012
- Home sales in Spain fall - Aug 10, 2012
- Mortgage activity in Spain falls - Dec 29, 2011
- Spain's poverty rates up - Oct 21, 2011
- Spanish home sales up 30 percent in August - Oct 14, 2010
- Bankruptcies soar in Spain - Feb 08, 2012
- Home sales dip in Spain - Dec 14, 2010
- US new homes sales decline in June - Jul 27, 2011
- Spanish government takes controlling stake in ailing bank - May 10, 2012
- Business bankruptcies in Spain rise - Apr 10, 2012
Tags: decade, declines, downward pressure, dual shock, efe, global recession, incomes, major cities, mediterranean coast, mortgage interest rates, national statistics institute, pace, provincial capitals, real estate valuation, sales tax, sales tax exemption, spanish real estate, tinsa, unemployment, valuation firm