Spain’s house sales decline slows to 25.5 pct

13th August 2009, Comments 0 comments

The month of June sees declining sales of houses in Spain slow down from May, shows official data.

Madrid – Sales of houses in Spain fell 25.5 percent for the month of June from last year, a slowdown in the rate of decline from May, when they dropped 32.2 percent, official data showed Wednesday.

Sales of houses plunged 34.9 percent in the first half of the year from the same period in 2008, the National Statistics Institute (INE) said.

INE did not issue the total number of transactions for the first six months, but listed June's tally as 35,372.

Spain's economy, the fifth-largest in Europe, entered recession at the end of last year.

A study by Spain's second-largest bank BBVA in July said the property sector has yet to hit the worst of the crisis.

It predicted prices for houses in Spain would fall nearly 30 percent between 2008 and 2011 before they start to recover.

Foreign buyers in particular are withdrawing from the Spanish market.

Previously released figures showed that in the first quarter, the number of foreign buyers fell 23.3 percent to 5,036, according to the housing ministry. But in terms of the value of the properties, the fall was even more severe.

Foreigners paid EUR 947.9 million for properties in Spain during the period, down from EUR 2.351 billion, or about 60 percent, from the same period in 2008.

AFP / Expatica

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