The report published by the INE last week regarding the number of homes sold in Spain in 2010 yields the figure of 441,368 units annually , of \u200b\u200bwhich 50.4% were housing starts and 49.6% remaining second-hand housing. After two years of falls consecutive number of house sales in Spain, in 2010 has turned to positive growth of 6.8% , clearly indicating the return to stability and standardization of our housing market . Trying to reduce this improvement in the housing market to the alleged effects of the end of the tax credit for home purchase * is quite implausible, given that in 2009 the decline in home sales was 24.9% and in 2008 of 28.6%. On the contrary, and regardless of whether it is still early for the sector to bolster its recovery, the slight increase in home sales recorded in 2010 is mainly due to the reactivation of credit by the banks.
From the data published by the INE highlight first the number of homes sold in a year marked by the serious crisis affecting the country and the credit crunch: 441,368 homes, a figure that is not exactly low for the country's economic situation. Of this total, 88.75% homes were free , which demonstrates the viability of protected housing developments despite the repeated promotional hype that has been carried out in the same . Most striking, however, The home sales data from last year is the ownership of the beneficiaries; Servihabitat (Real Estate La Caixa), has sold an average of 16 stories a day, with over 6,000 sales in the past year more than 3,000 Bancaja story same as Caja Madrid and Banesto, which corroborates what we have been announcing for months: the revival of the credit for the purchase of housing starts for homes that the bank itself has acquired portfolio of payment in kind of the promoters Real Estate. The Bank, in effect, begins to make concessions.
Although there should be very cautious with the recovery of our real estate sector ** we have no doubt that the Bank will lead existing home sales this year, which will enable the reduction of existing stock (approximately 600,000 units), and the final stabilization of the sector and prices. For the feasibility of the purchase is absolutely fundamental to open credit, and banking has begun to grant funding of up to 100% of all households who manage their real estate divisions, and now, with full knowledge of the bad situation crossing the developers will begin to develop the land it has acquired in numerous recommendations and embargoes ***, taking into account that the elimination of profit margin promoter enable a reduction in selling prices in the future housing, adapting to the current market situation. Recall that the bulk of this reduction is already discounted, and that future developments carried out by the Bank on land that is currently property, given the high price of land value, the elimination of the profit margin the developer will allow the adaptation of these promotions to the reality of the market today at a general level, but will not drop percentage rates as prices in the last three years, mainly based on mortgage charge of promotions at a general level (around 80% of the appraised value), allowing reductions of around 20% from highs, (which rarely reach that percentage, because financial institutions have to bear the costs promotion management and obtain, in many cases, capital gains from it), and also by the potential bottlenecks in the supply of housing that is taking place on the basis of virtually no development of new developments. This may result, as we have said, positive growth in house prices in the year 2012.
MBQ Group
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