Business and Real Estate

Archive for the ‘Home Sales’ Category

Sure many are wondering what will be the evolution of house prices in 2011. Although there are more than forecasts it looks like it will continue the downward trend begun in 2007 (estimated at 16% on average), mainly because the end of its tax relief applied in recent years.

Developers continue to have a wide stock of unsold homes and for output, there is no alternative to lower prices. ‘ve been listening to this really is not long ago and have noticed that too. It may be due, during the last six months, to the increase of VAT, and other factors.

The absorption of the stock is still much slower than initially thought. And the Bank of Spain does see that the trend will remain unchanged for 2011, among other reasons because of the demographic expected.

We must wait at least until the first quarter to revisit the situation but in the meantime, many people still have too much difficulty to access the housing market. In summary, it appears that next year will remain difficult and we must give it time.