Europe property markets "sinking deeper"

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Europe's property markets are "sinking deeper", according to Global Property Guide.

The site's latest survey of global property prices in the second quarter of 2012 paints a worsening picture for many markets, as values continue to drop. Ireland, Spain, Greece, Portugal and the Netherlands all saw "alarming price falls" compared to the second quarter of 2011, reports GPG, with each market's values down by over 10 per cent after inflation. Poland and Cyprus may soon slip into the abyss too, warns the survey.

In the worst-affected European countries, house price declines were significantly greater this year, than during the same period last year. House prices fell in 15 of the 22 European countries for which house price data is available.

20 housing markets performed more poorly year-on-year in Q2 2012 than in the same period last year, while 19 countries performed better, again in inflation-adjusted terms.

Of the 39 countries for which quarterly house price figures are available, house prices fell in 25 countries, rose in only 13, while one country (the US) posted mixed signals during the year ending in the second quarter of 2012

Ireland was again the world's weakest housing market. Its residential property index plunged 16.85% year-on-year in Q2 2012, and fell by 2.91% in the latest quarter. Transaction volumes were low, and mortgage lending weak.

The next eight weakest housing markets in the world were all in Europe, including Spain (-13.18%) during the year to Q2 2012), Netherlands (-10.12%), Greece (-11.92%), Portugal (-10.95%), Warsaw, Poland (-8.19%), and Cyprus (-7.68%), the Slovak Republic (-5.61%) and Sweden (-4.18%). All except the Slovak Republic saw bigger house price falls this year, than the previous year.

Other European countries and capital cities which saw moderate year-on-year house price falls to Q2 2012 included Bulgaria (-3.87%), the UK (-3.42%), Vilnius, Lithuania (-3.07%), Romania (-2.71%), Finland (-2.22%), and Russia (-2.08%).

European countries and capital cities which enjoyed house price rises included Norway, whose house prices rose 6.26% year-on-year, Germany (up 5.24% - a significant improvement from the decline during the same period last year of 0.65%), Switzerland (4.86%), Estonia (2.83%), Turkey (2.57%), Riga, Latvia (2.5%), and Iceland (1.72%).