Spanish housing boom shows sign of slowdown

15th February 2007, Comments 0 comments

15 February 2007, MADRID – Spanish mortgages grew 23.3 percent in 2006, the smallest increase since 2002, the Spanish Mortgage Association (AHE) said on Thursday.

15 February 2007

MADRID – Spanish mortgages grew 23.3 percent in 2006, the smallest increase since 2002, the Spanish Mortgage Association (AHE) said on Thursday.

The figure adds weight to the view of many economists that Spain’s booming housing market is slowing down.

The total value of mortgages held by families and companies amounted to EUR 911.376 billion after growing 172.042 billion in 2006, said the AHE.

It expects mortgages to grow by between 14-18 percent, significant growth but far less than in the last three years. In 2003, total mortgages climbed by 24.1 percent, in 2004 they climbed by 24.49 percent and in 2005 by 26.94.

The slowdown is largely due to the high level which house prices reached in 2006 and to the expected interest rise hikes from the Central European Bank this year.

[Copyright EFE with Expatica]

Subject: Spanish news

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