New PM confirms that Spanish economy is still falling and has yet to reach rock bottom

[aspasia]

New PM confirms that Spanish economy is still falling and has yet to reach rock bottom

Many people have asked me whether the economic crisis here has at last turned the corner, or whether we still have to reach the bottom. In particular, they're interested in property prices, but are generally concerned about how la crisis is affecting the islands. Now, the new Spanish PM, Mariano Rajoy, has been explicit: he [...]

Source: New PM confirms that Spanish economy is still falling and has yet to reach rock bottom

[Janet]

According to Eurostat, not Spain itself, the price of a dwelling in the country rose for the first time since 2010. All politicians and economists here seemed to concur last autumn that the bottom appeared to have been turned. Let's hope they're right! Anyone buying now should get a real bargain, anyway! Idealista

[minesadorada]

Anyone buying now should get a real bargain, anyway!

Not so, now you've let the cat out of the bag..

[Janet]

whereas if they wait because they don't know they won't get one anyway!   

[poker]

In China statistic anelists pump the grouthperspective for 2014/15 artificialy up,  in the EU the central banks .
# grouthaddiction . . . . .

Well it won't and cant last.
Sertainly not in Spain with 650€ basic waidge .

[Janet]

that's the minimum wage ... and should be multiplied by 14, not 12 ...

Minimum wage is 9,000, average in the Canaries is 12,000, and that's one of the lowest in Spain. It's not as dire as you think, and Eurostat has no reason to lie about Spain's property prices!

[poker]

No but cheap loans wont last . . . .
And the future deccenia(s) wont/dont have the spending power of the past deccenia of peaple who where buying.

And still only a bit of the total propertys from the banks are sold . . . . .
More coming free in spring I know from someone in the banks .

Well its different for everybody but I have time to wayt till the next crisis that is coming ( raising of bank intersests = falling of property prices ) .

[Janet]

It's the crap property that's coming, P ...  and the banks have to offload it because of the terms of their bailout. That's why they're going to be giving stuff away. But I know what they have left, and therefore what's coming ... and no-one will want it apart from those who don't care a bit about where they live or its quality, and just want cheap for cheap's sake. They will then be stuck with it because it will have zero resale value. Anything that was sellable the banks have already sold.

And the people who are coming increasingly don't need mortgages. Spain will end up like many other countries where a disproportionate number of owners are not nationals of the country. None of that matters when it comes to property prices, however. I know you think they're going to drop like a stone. They aren't. The crap stuff will be written off, and the decent stuff will retain its (current low) price, and eventually start to regain some value.

[poker]

Thats one thing we still have here as an ace the peaple coming for the sun and buying .

And there will always be parts that keep value , becouse of the rental income from tourists as you say.

But in property the bad crap drags the better ones also down . . . .

And I am looking for a piece of better crap , not in a realy touristic zone and also not to far on the mountain .
Anyway our rent is cheap as sayd I have time . . . . . . 

[Guanche]

I wouldn't trust Eurostat as far as I could throw it. It may not be Spains propaganda but Eurostat has a vested interest in making the Eurozone look good. I have my house with Idealista so I watch the prices of houses and they are not going up. they are quite definitely going down. Mine has been on the market for just over a year and have knocked over €100,000 off the price and we have had one viewing, no other interest what so ever. I see other houses in the village have slashed their prices but there still for sale, many being on the books much longer than ours.

It may be diffrent in the 'tourist' market but not here in the local market. I suspect that the banks are only giving loans out to people buying houses they have on their books in order to get rid of them. I know I seem to have a very negative view on the 'crisis' and Spain and its not really like me. But I see and hear the problems first hand mixing with the locals 100% of the time and it does colour my views.