To this end, we've screen grabbed a few interesting graphs from a January 2010 report on the Spanish property market from Caixa Catalunya. Sixty four pages long and entirely in Spanish, among the commendable features of this study is that the author has the good manners to come out and say that he does not know how many unsold new homes there are in Spain - and locates that number between 645 and 959 thousand units. Not your typical journalistic tick latching himself onto the leg of a nice, big round number with lots of zeros - like 1,000,000 say.
It can be found here. Go to the javascript hyperlink entitled, 'Informe monográfico: “El proceso de ajuste del mercado inmobiliario español”'.
1). Mortgage payments as a percentage of monthly income - 20, 25 and 30-year term.
2). Term of new mortgages, in years.
3). LTV of Spanish mortgages. The blue line (left scale) is the average LTV of new mortgages. The dashed red line (right scale) is the percentage of mortgages granted with an LTV greater then 80%.
Among other notable items is the considerable amount of material on Spanish demographics (pages 28 to 38). The author concludes that demand for new housing should remain at 220,000 units a year for the foreseeable future. For those who have not seen it, our 'years to clear' chart may be of some interest in this regard.
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1 Comments:
It would be interesting to compare the amount of money lost by pension plans due to abnormally low interest rates vs the amount of money gained by mortgage holders.
I suppose the good new is that Germany still isn't doing all that well, so interest rates get to stay low for a while longer.
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