Prices down nearly 30% on spanish costas

Average property prices in Spain have crashed to their lowest point since the boom peak year of 2007. The latest official report shows the Costas registered a massive 28.8% discount as Spanish banks clear toxic property assets with 50% price cuts and generous mortgages of up to 107% in emerging areas like the Costa Calida.

Costa home prices are down 8.7% year-on-year already in 2011 but with increasing numbers of buyers causing shortages in some areas, the price fall seems likely to bottom out soon, say some pundits.

The official IME (Spanish Property Market Index) for June 2011 dropped a full 12 points, to 1782, from May, representing a cumulative decline across the country of 22% from the peak in 2007. Mediterranean coastal resorts were down 8.9% compared with the previous month’s 8.1% and a record 28.8% from 2007 prices.

But there are even better bargains to be had for savvy international investors and families seeking a holiday home. Many current buyers are snapping-up bank-owned bargains at average discounts of 34%, and in some cases more than 50%, as developers are forced to sell their key ready apartments to repay outstanding development loans.

Source: www.PropertyInSpain.net