Following up on discussion of Greek house prices the other day, I found some data on Spanish house prices from Spanish surveyors Tinsa. The picture is similar to Greece - if anything a bit worse. Total losses from the peak have been about one third, and the situation has not stabilized. In fact as the year-on-year change below show, prices losses have recently accelerated:
This obviously is going to worsen the position of Spanish banks (which are already suffering from moderate capital flight).
Edward Hugh at AFOE has some excellent analyses of the economic situation in Spain. He covered the housing prices, and Bankia in a post this week: http://fistfulofeuros.net/afoe/its-time-to-stop-using-chewing-gum-and-chicken-wire-in-spain/#more-9609.
ReplyDeleteThe high and increasing Spanish unemployment rate is particularly troubling.
Bert
Mike Shedlock has more with Spain's Bankrupt Catalonia Region "Running Out of Options" to Refinance €13 Billion; Total Regional Needs are €50.7 Billion; Regions Want "Open Bar" with Central Bank Guarantees
ReplyDeleteand the solution is Bankruptcy, default, and an exit of the eurozone coupled with work-rule and pension reform.
Alex
I can't find the reference, but I have read that judging by standard bubble measures (e.g., price/rent ratios) - Spain's housing bubble is still *higher* that the U.S.'s bubble at it's peak. I actually find this credible given the Spanish banks' and government's fondness for "extend and pretend".
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