Fall in Spanish Property prices

30% drop in house and flat prices in June

According to figures provided by the Spanish National Institute of Statistics (INE) the number of house and flat sales went down by 29.6% compared to the same month last year. Private property sales went down by 30% in June and the sale of state subsidised housing went down by 24.9%.

The biggest drop was in second hand properties whose sales dropped by 38.9% compared to a drop in the sale of new properties of 16.1%.

Today figures were also published on the average price of mortgages which now stands at 141,939 euros. Figures show that they have also fallen for the fifth consecutive month and by 4.6% compared to last month.

The amount of capital lent by financial institutions has also dropped by 40.57% compared to June 2007. Now an average mortgage for a property is 158,641 euros which is 8.22% less than last year. This is a clear indication that property prices have gone down since the end of 2007 when the property crash began.

Building societies conceded the highest number of mortgages (56%) followed by banks which lent 34.6% and other financial institutions which lent 9.4% of the total.
Meanwhile property prices in the UK have registered their highest fall in price in August compared to the same month last year since 1990. Now an average property in the UK is estimated to cost around 164,654 pounds (204,609 euros) which is 10.5% less than the same time last year.