Spanish house prices slide in Q3

The decline of Spanish property prices has failed to halt, with the latest figures published by the country's Ministry of Public Works showing further falls.

In the third quarter of the year, the average value of a home in Spain slid by 5.5 per cent on an annual basis, the official statistics show. A quarter-on-quarter drop of 1.3 per cent was also recorded.

Speaking to the Wall Street Journal, Nomura banking analyst Daragh Quinn predicted that the Spanish real estate sector still has further to fall.

He estimated that 100,000 new homes will be sold in the country this year, a significant reduction from the 326,000 properties that were snapped up during the boom year of 2007.

Meanwhile, Tinsa's General IMIE Index released earlier this month painted a worse picture of the situation.

According to the organisation, house prices around the country fell by an average of 7.4 per cent between September 2010 and the same month this year.

It also revealed that capitals and major cities - as well as areas on the Mediterranean coast have been hit the hardest by the decline - registering falls in real estate values of 8.9 per cent and 8.2 per cent respectively.
 

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