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Spanish home sales fall in fourth quarter
Spanish home sales fall in fourth quarter
| Published: | 16 Mar at 9 AM |
Spanish home sales fell during the final three months on last year, hitting their lowest mark since 2007, as the country continues to battle recession, reports the BBC.
House prices dropped at an annual rate of 11.2 per cent in 2011, revealed the Institudo Nacional de Estadistica, a fall of nearly four percentage points compared with the previous quarter. There was also a sharp fall of 9.6 per cent in second-hand house prices in the quarter.
Spain has been finding times hard since the housing market crash in 2008. The Iberian country currently has the Europe’s highest unemployment rate at 22.8 per cent – more than two times the average rate of unemployment in the eurozone. There are a total of five million unemployed people, while 50 per cent of young people are unable to find work.
The prices of houses in Madrid dropped most during the quarter, a year-on-year fall of 15.7 per cent. Meanwhile, Catalonia recorded the second-biggest falls, showed official figures.
Because of the debt crisis in the eurozone and to avoid having to be bailed out, the nation has implemented austerity cuts in order to lower its debts and reduce its deficits. Spanish Prime Minister Mariano Rajoy said recently that the target of the European Union of cutting the budget this year – to 4.4 per cent – would not be hit. He said that the deficit was likely to be 5.8 per cent of GDP.
House prices dropped at an annual rate of 11.2 per cent in 2011, revealed the Institudo Nacional de Estadistica, a fall of nearly four percentage points compared with the previous quarter. There was also a sharp fall of 9.6 per cent in second-hand house prices in the quarter.
Spain has been finding times hard since the housing market crash in 2008. The Iberian country currently has the Europe’s highest unemployment rate at 22.8 per cent – more than two times the average rate of unemployment in the eurozone. There are a total of five million unemployed people, while 50 per cent of young people are unable to find work.
The prices of houses in Madrid dropped most during the quarter, a year-on-year fall of 15.7 per cent. Meanwhile, Catalonia recorded the second-biggest falls, showed official figures.
Because of the debt crisis in the eurozone and to avoid having to be bailed out, the nation has implemented austerity cuts in order to lower its debts and reduce its deficits. Spanish Prime Minister Mariano Rajoy said recently that the target of the European Union of cutting the budget this year – to 4.4 per cent – would not be hit. He said that the deficit was likely to be 5.8 per cent of GDP.
