Spanish house inflation slowed in Q4
The ministry of housing in Spain which includes the Andalucia property market, has stated that houses prices rose by 4.8% in the last quarter of 2007
As a comparison house price inflation was 9.1% in 2006 and 12.8% in 2005
and 17% in 2004
Further bad news is that the NUMBER of houses being sold has also greatly reduced.
Take a look at these figues from the latest leading indicators:
Houses sold in 2007 were 128,200 which is 16% down on 2006
And worse, the SUPPLY of new houses increased by 9.4%
Because of the over supply and lack of sales, over 40% of real estate agencies in the Spain closed down.
The only positive we can see here is that prices must fall and that there are bargains to be had, if you are patient and are prepared to wait. You will do even better if you are prepared to make low offers and walk away if they are not accepted.
Tags: estate agents, houses, prices
