Monday, 11 April 2011

Complacent Europe must realise Spain will be next

http://www.ft.com/cms/s/0/dc2955ea-63ab-11e0-bd7f-00144feab49a.html#axzz1JCnlHvVH

Extract -

Apart from the direct impact on economic growth, higher interest rates will hit the Spanish real estate market. Almost all Spanish mortgages are based on the one-year Euribor money market rate, which is now close to 2 per cent, and rising.



The most important housing market statistic in Spain is the number of vacant properties, about 1m, which means that the market will suffer from oversupply for several years. This will be the driver of further price declines.


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Exactly in line with what I have been saying all along.


Pls read my earlier posts in Spain and Europe in general as well.

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