Fall of housing prices increases foreign buyers in spain

With sales figures showing foreign purchases of Spain increased by 24.7% in the third quarter, over the same period of 2010, according to the Housing Price Index (HPI) of the National Statistics Institute (INE) sales prices in the same period were shown to have fallen by 7.4%.

Cinco Dias reported that the fall in housing prices leaves the vendor little choice but to lower prices in order to attract a buyer. Housing has continued to get cheaper since the beginning of the crisis with a flood of cut price properties available.

According to the Housing Price Index published on Thursday by the National Statistics Institute there are now fourteen consecutive quarters in which home prices have negative year-on-year figures. This means that prices have fallen steadily since mid-2008.

The decline began in the second quarter of 2008 (-0.3%) and recorded the biggest drop in the second quarter of 2009 (-7.7%). The 7.4% decline experienced in the third quarter of this year is the most pronounced since then.

Source: Kyero.com