Recent reports out of Spain about the state of the Spanish Property market offer some guarded outlooks for 2010. One report notes that the decline in property prices in Spain is slowing, while another sees a potentially large drop this year.
The latest Tinsa property price index for November, 2009, shows that the average home price fell by 6.6 percent over the previous 12 months. That is a lower drop that the October price index, which saw prices fall by 7.4 percent.
Spanish property consultants Aguirre Newman predict that prices could fall by as much as 27 percent in 2010. A report from the firm showed that overall transactions fell by 41 percent in 2009 compared to 2008. The report is the Coyuntura Global del Mercado Inmobiliario Español and it also warns that bank valuations continue to overestimate the value of property in Spain.
Aguirre Newman and other analysts warm that while banks, which hold many repossessed properties, could unload them and further depress the market.
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