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S&P: "Spanish Home Prices To Drop Another 25%"

Tyler Durden's picture


For all the news out of Spain: tumbling sovereign bonds, bailed out banking sector, there really is just one driver of everything: the same one many have been warning about for years: the artificially inflated valuation of the Spanish housing sector. Because the only reason why banks are suddenly finding that their assets are worth much less than previously expected, is because it is now impossible for local banks to keep the real-estate "assets" on their books at marks-to-model (read par) as the bulk of them have long since become impaired, delinquent or outright defaulted.

The common theme of course is that they no longer generate cash inflows. What however is still there are bank liabilities, which most certainly generate cash outflows. And in the absence of retained earnings (but plenty of retained losses), there is just no more cash to mask the capital deficiency. That's the whole issue with not only Spain, but Europe in a nutshell, the same we have been banking the table on for the past year: the accelerating disappearance of money good and cash-flow generating assets. Furthermore, once the spigot has been turned on, there is no stopping it, and the marks-to-market start pouring in fast and furious.

Which is the worst news for holders of Spanish bonds, now that the entire banking sector is effectively pari passu with the sovereign debt courtesy of priming ESM debt: recall that every incremental dollar, or in this case, euro, of bank capital deficiency will be one more priming bailout euro behind. Effectively there is now an inverse relationship between the Spanish housing sector and the country's sovereign bonds. And for those who are still naively are clutching to Spanish bonds, even as they tumble to all time lows (that's the local law, as opposed to the legal arbitrage trade we have been promoting and which today is making even more money), we have some bad news: that perpetual of optimists, S&P, just said that the Spanish housing sector has, wait for it, another 25% to drop!

This means a comparable drop in store for Spanish bonds and all the related securities in Europe, which courtesy of the bailout are all now daisy-chained.

From S&P:

Spain's Housing Market May Need Four More Years To Rebalance


The unwinding has begun: House prices have dropped 22% in nominal terms between first-quarter 2008 and first-quarter 2012, according to the Organization for Economic Cooperation and Development. That's more than in any other eurozone country except for Ireland. However, the magnitude of the decline has to be juxtaposed against the 150% rise in prices in Spain between 2000 and the peak in 2008. We note that prices climbed 116% in Ireland and 60% in the eurozone on average over the same period.



  • For Spain's housing market to recover, household debt, which is still high, needs to come down further, implying years of weak
    credit demand.
  • Because of the heavy weight of unsold housing stock, we believe that the correction in housing prices is likely to be deeper and
    more prolonged than in the previous cycle, taking up to four more years for the market to absorb the glut.
  • A look at fundamentals--price to income and price to rent ratios--leads us to expect a further 25% drop in housing prices.
  • Investment and employment in the construction sector is now down to 12.7% and 6.8% of GDP, close to half of 2006 and 2007 levels, respectively.
  • The bursting of the real estate bubble is visible in Spain's dire economic prospects: Standard & Poor's expects GDP to contract in real terms by 1.5% this year and by 0.5% in 2013.

There is a lot in the report, but here are the key points:

Market Fundamentals Also Point To A Further Decline In Prices


Price to income and price to rent ratios in Ireland and the U.S. now stand below or nearly below their long-term average--but that is not the case for Spain. The country's price to income ratio has dropped from its peak in fourth-quarter 2006 but is still higher than its long-term average, and the same observation can be made about the price-to-rent ratio (chart 3). Looking at just these measures, Spanish house prices still need to adjust by nearly 25% for them to return to their long-term averages.



The Sharp Rise In Unemployment Is Weighing On The Household Sector


We expect Spain's economy to contract by 1.5% in 2012 and 0.5% in 2013 because of deteriorating private consumption, fiscal retrenchment, and weak credit conditions--coupled with flimsy external demand for Spanish products. High unemployment has been a drag on private consumption since the reversal of the housing and construction boom. The construction sector's share of GDP climbed from 15% at the end of 1999 to 22% in 2006, compared with 6% on average in the eurozone over the same period. With the real estate bust, Spain's construction sector has shrunk, representing only 12.7% of GDP in 2012.


The contraction of the construction sector triggered a loss of 1.5 million jobs between 2008 and March 2012. Employment in the sector, which was one of the highest in the EU with 14% of total employment in 2007, declined to 6.8% in March 2012. In comparison, this sector in France accounted only for 6.5% of employment in 2007.


The surge in unemployment is reflected in higher doubtful loans, as households find it more difficult to service their mortgages (see chart 4). Yet low interest rates have provided some relief to borrowers. Spanish households are very sensitive to changes in interest rates, since variable-rate loans comprise 90% of mortgages in Spain. That compares with 40% in the eurozone. In February 2012, as the unemployment rate reached 24%, doubtful loans reached 2.8% of total housing loans, a ratio that appears still reasonably low. But as the economy continues to weaken, we will continue to watch that indicator carefully as a potential harbinger of additional financial difficulties in the household sector.


And there you have it. Remember: Greek bonds at 100% in September 2011 were a whopping buy. Until of course there were an even more whopping buy at 1000% a few months later.


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Thu, 06/14/2012 - 15:52 | 2526979 Ahmeexnal
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Espan~oles Gilipollas!

Thu, 06/14/2012 - 15:53 | 2526988 SilverTree
SilverTree's picture

The Monsters at the Turning of the Age



When you are aware, you can prepare.


Thu, 06/14/2012 - 15:57 | 2527011 sunaJ
sunaJ's picture

Look what those rascals are building now.  They're so funny with their toys, playing around in the sand and in our backyards.  So cute!

Thu, 06/14/2012 - 16:06 | 2527034 CClarity
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Spain issues dramatic messages of IMPENDING eurozone doom via  - -  "A panicky spanish Government issued dramatic messages of impending doom" In essence, Minister says future of Eurozone will be determined in next few days, perhaps coming hours.

Thu, 06/14/2012 - 16:15 | 2527084 SilverTree
SilverTree's picture

"Luke at that speed do you think you can pull-out in time?!?"

Thu, 06/14/2012 - 21:42 | 2527944 Bicycle Repairman
Bicycle Repairman's picture

"Spain's Housing Market May Need Four More Years To Rebalance"

Comedy gold.

Fri, 06/15/2012 - 03:08 | 2528515 mr_T
mr_T's picture

Prices for a flat in Madrid are still ridiculous. I have been waiting since 2005 to buy a place... I'll wait till the big reset and keep stacking..

Thu, 06/14/2012 - 16:08 | 2527059 Silver Bug
Silver Bug's picture

Another bubble exploding, hold tight your gold and silver. Don't listen to the banksters.


Buy Silver, Take your Freedom back!

Thu, 06/14/2012 - 16:20 | 2527070 Dr. Engali
Dr. Engali's picture

It's all good....we live in the land of the free and the home of the brave. A people as proud and as brave as those here in the U.S will never stand for government intrusion into their lives like that. Now pass the Doritos and give me the remote...Oprah is having Dr. Phil on today.

Thu, 06/14/2012 - 16:20 | 2527103 SilverTree
SilverTree's picture

Yerp, a major rude awakening is on the way for the bulk.

Thu, 06/14/2012 - 16:40 | 2527164 Mark123
Mark123's picture

I like the pretty retards chatting about it.  Wouldn't it be cool if the drone came along and shot hald of her face off in this clip.


"It's interesting they are testing these things right in our backya.....aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaarrrrrrrrrrrrrrrrrrgggggggggggg. Gurgle....gasp....thump"

Thu, 06/14/2012 - 15:57 | 2527018 somecallmetimmah
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Yeah, how do you say 'mi casa es su casa' in Mandarin again?

Fri, 06/15/2012 - 00:09 | 2528298 Unbezahlbar
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Inland Empire posts highest foreclosure rate of big metro areas By Alejandro Lazo


U.S. Home Foreclosure Activity Upticks 9% in May Over Last Month

Thu, 06/14/2012 - 16:03 | 2527048 RmcAZ
RmcAZ's picture

At least the U.S. housing market has bottomed.

Thu, 06/14/2012 - 19:49 | 2527616 Zero Govt
Zero Govt's picture

Yes indeed ...well at least it will bottom soon as the US Banks release the 1 million $1m+ homes back onto the market they're hiding under the rug

well when i say $1m+ homes, they may not actually fetch that you understand

Thu, 06/14/2012 - 20:57 | 2527812 Bunga Bunga
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Another sign that there is a bottom is that it has been bottoming for years now and will be bottoming for many years to come.

Thu, 06/14/2012 - 16:26 | 2527121 BandGap
BandGap's picture

Good Lord, this isn't funny at all.

The Spain economy is what the current administration modeled in moving towards "green" solutions for energy employment. So much fucking waste, and wasted jobs.

Thu, 06/14/2012 - 16:30 | 2527134 Manthong
Manthong's picture

I was just about to mention how successful the tens of billions Spain has invested in solar and renewable energy is at producing jobs and cheap electricity.

Thu, 06/14/2012 - 19:32 | 2527575 Ropingdown
Ropingdown's picture

Great comment.  I have to laugh. Spain was very much part of the model for Obama. Sweden, France, Spain.  Benefits.  Mortgages for everybody.  Michelle vacationed nearby.  It was the dream-world of the Chicago houses-for-the-poor crowd, which is Jarrett, Obama, Michelle, Rezko, etc.  Lots of upscale for the elite, but also lots of nice condos and town-houses for the minimum-wage folks, free medicine for everyone.  Well, copy them now, hotshots!  You already did?  Too late to rethink.  Sweden, my wife's other home, is still good, but there's not a chance in hell the US can copy them.  Simplicity, high taxes, uncrowded, just a different world.  I suppose it's like living in coastal Maine or New Hampshire IF you also have a government pension/HI. laugh. What a world.

Thu, 06/14/2012 - 19:55 | 2527629 Zero Govt
Zero Govt's picture

the Spanish (Govt wrecked) green energy sector is a social joke 

the funniest story is the wind turbines being hooked up to diesel generators so when they don't spin (all too often) the public-private partnership can still generate income credits from the national grid

Europe is awash with these useless windmills (and Don Quixote Govt ministers chasing bankrupt green demons, sorry dreams)

Thu, 06/14/2012 - 20:35 | 2527742 Ropingdown
Ropingdown's picture

Yep about the diesel.  But those government ministers were chasing pensions and plum appointments to Brussels and other EU locations after they earned it by spending so much, which is hard work. I have found the "let's one up California" approach increasingly odd. The high-speed trains are wonderful as are the new local [to me] highways. Mountains of debt for those, I'm sure.  The taxes in Spain for residents are very high.  The pols 'retire' to Brussels or Luxembourg jobs and don't pay tax.  Games.  The whole world has become games.  Was probably true 100 years ago, I tell myself.

Fri, 06/15/2012 - 00:16 | 2528315 vh070
vh070's picture

Better acknowledge that you screwed the pooch by being blind to the abuses and do something positive: Take and hold.

1) Take over the mortgages

2) Write them down by some nominal percentage

3) Turn remainder into equity paper

4) ...taking compensating equity in the homes and banks

5) Allow banks and homeowners the option to buy back equity

6) Charge nominal rent where appropriate

7) Adjust upon change of ownership

8) Review every two years

9) Add a progressive surcharge tax on banker salaries

Yah, you'll kill the real estate market for a decade but it's dead already.  It may be complicated but the alternative is… what?
Thu, 06/14/2012 - 15:53 | 2526986 asteroids
asteroids's picture

There will be no G20 bailout. HTF's can be beaten/destroyed by LYING to them. You have 5-10mins to profit on rumor. Yipee!

Thu, 06/14/2012 - 15:53 | 2526990 Snakeeyes
Snakeeyes's picture

I wrote about this earlier today. BAD housing numbers, BAD unemployment numbers, HUGE bad loans, ZOMBIE borrowers.

Sorry Spain, you are a cooked goose.

Thu, 06/14/2012 - 15:55 | 2526999 Rip van Wrinkle
Rip van Wrinkle's picture

Just wait 'til the UK has the same problems.

Thu, 06/14/2012 - 15:57 | 2527016 PeeTee
PeeTee's picture

What do you mean "wait"?

Thu, 06/14/2012 - 15:54 | 2526994 devo
devo's picture

US housing has another 25% drop, too. At least in real terms.

Thu, 06/14/2012 - 21:45 | 2527955 Bicycle Repairman
Bicycle Repairman's picture

Since the government insists on interfering with the housing marketplace the 25% drop will take place over a generation.  A death by a 1,000 cuts for RE investors.

Thu, 06/14/2012 - 15:55 | 2526998 DrDinkus
DrDinkus's picture

anybody else need a drink?

Thu, 06/14/2012 - 15:55 | 2527000 morisu
morisu's picture

Well.. at least they are killing Ireland right now at Euro2012 football. Have to give them something, they can play.

Thu, 06/14/2012 - 15:56 | 2527003 Ineverslice
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Asset deflation.....plain and simple.

Thu, 06/14/2012 - 15:56 | 2527005 geewhiz190
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just when i thought it was safe to get back into the pool....killjoy!

Thu, 06/14/2012 - 15:56 | 2527006 DrDinkus
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Bob Pisani...what a windbag

Thu, 06/14/2012 - 15:56 | 2527007 wandstrasse
wandstrasse's picture

This is bullish... at least the OSBORNE bulls should keep standing.

Thu, 06/14/2012 - 15:57 | 2527013 l1b3rty
l1b3rty's picture


Thu, 06/14/2012 - 15:58 | 2527014 1835jackson
1835jackson's picture

You know people joke about all this but the human toll will be horrible when the BIG stinking, steming pile of shit hits the fan. FUCKING central bankers you should all be thrown in jail with your worthless money for cunts.

Thu, 06/14/2012 - 20:04 | 2527657 Zero Govt
Zero Govt's picture

so agree

but staggeringly the dizzy chicken caught in a hurricane better known as Mervyn King, Governor of the Bank of England, the worst, most inept and clueless Gov in 200 years is getting both a pay rise and lining his pension like never before

King should be swinging for his total incompetence as regulator, Gov, non-problem solver but no, snout in the trough like it was 2005 and nothing had happened!!

Thu, 06/14/2012 - 15:57 | 2527015 q99x2
q99x2's picture

Don't tell the Bernank otherwise he'll be over there trying to prop up the Spanish housing market with my mother's social security perscription medication money.

Thu, 06/14/2012 - 15:58 | 2527025 deepsouthdoug
deepsouthdoug's picture

Only 25% - Let's go for another 80% down. 

Thu, 06/14/2012 - 15:58 | 2527026 Duke of Con Dao
Duke of Con Dao's picture

don't worry David Koch is tanned, fueled up and on his way

by the time his yacht reaches Spain it'll be a buyers market


Thu, 06/14/2012 - 16:04 | 2527050 GMadScientist
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And me without my rifle.

<snaps fingers>

Thu, 06/14/2012 - 15:59 | 2527031 CommunityStandard
CommunityStandard's picture

Spain is the obvious one.  How long until the S&P admits that the US has another 25% drop (at least) to go?

Thu, 06/14/2012 - 15:59 | 2527032 Muppet Pimp
Muppet Pimp's picture

Globalization is a fail for the little guy, period.  That is my story and I am sticking to it.  It is a boon for the financiers but they are the only ones.  This is such a ridiculous joke anymore.  All the citizens of the world being tied (through their retirement funds and the financial markets) to what the outcome of an election from arguably the laziest people in all of europe decide to vote for is ridiculous.  Everyone knows what the Greeks will decide, they will decide to do whatever is palatable at the moment to get the free moneez.  They will choose that over and over again.  These people do not even pay taxes and still want the free stuff. At what point do the globalists have us all on the edge of our seat as they colonize the last tribe on Papua New Guinea and there is a referendum on whether or not they will give up cannibalism.  This is such a joke.

Thu, 06/14/2012 - 16:02 | 2527045 killallthefiat
killallthefiat's picture

The NAR just tweeted:

The US is not Spain.

Thu, 06/14/2012 - 20:08 | 2527669 Zero Govt
Zero Govt's picture

True ....the US is worse than Spain for debt

...a fragile thread called 'confidence' is what keeps the US from being hung out to dry like Spain

Thu, 06/14/2012 - 16:03 | 2527047 GMadScientist
GMadScientist's picture

please scale bailouts of agua-casas accordingly by 1.33

Thu, 06/14/2012 - 16:08 | 2527061 the 300000000th...
the 300000000th percent's picture

Bullish, priced in, possible just straight up ignored..... The market only cares about good news now a days ZH they wont pay attention to this sort of news

Thu, 06/14/2012 - 16:10 | 2527067 Snakeeyes
Snakeeyes's picture

Since it just dropped 5% for Q1, zombie borrowers, growing unemployment, and bank rates skyrocketing, YUP!!!!!!

The NEW Zombie Apocolypse!

Thu, 06/14/2012 - 16:15 | 2527086 robertocarlos
robertocarlos's picture

Sell your house in Canada and move to Spain.



Thu, 06/14/2012 - 16:27 | 2527124 AlaricBalth
AlaricBalth's picture

Sell your re-inflated condo in South Beach, Miami. Move to Spain.
Profit without having to learn a new language.

Thu, 06/14/2012 - 17:12 | 2527256 Mark123
Mark123's picture

But you would miss the lovely winter weather in Canada!  Sure, the food is great, scenery wonderful, lower cost of living, full of history, easy to visit other European countries, friendly people...OK...I am leaving.

Thu, 06/14/2012 - 16:39 | 2527154 SqueekyFromm
SqueekyFromm's picture

I think a lot of this real estate value decine stuff is over-rated as the main cause of financial problems. A company can survive being "under-water" as long as it has sufficient income to pay the note. In fact, it is quite common. Here is an example. A trucking company buys a big truck and trailer for $120,000. The note is ZIRP at @ $2,000/month for 60 months.

At the end of the first year, the note balance is $96,000 and the value of the asset is $120,000 less 1/3 depreciation of $40,000, or a net asset value of $80,000. The trucking company, which has but one truck and trailer is UNDERWATER on the books to the tune of negative $16,000. (It has a note of $96,000 and an asset of $80,000.) It is "upside down." Yet, nobody panics because the company is grossing $20,000 per month in revenues, ($2.00 per mile times 10,000 miles) or $240,000 per year with $100,000 left over after operating expenses for the driver/owner's salary.

This "UNDERWATER" status continues at the end of the second year. Now, the note is down to $72,000 and the book value of the truck/trailer is now $40,000. (This is "$120,000 minus two years of depreciation of $40,000 each year.) Now, the company is bookwise underwater negative $32,000, or twice the amount that it was the year before!!! Yet, again nobody blinks because once again the owner has paid his note and walked away to the bank with net $100,000 in salary/earnings.

The only way there would be a problem is if the revenues and then the NET earnings declined to a point where either the wages could not be paid, or the note paid. Or, if the owner/driver got tired of driving a truck and walked away from the truck and the note for a new career as an investment banker. As long as the truck is earning its keep with money to spare, the owner/driver has no particularly overwhelming  FINANCIAL disincentive to discontinuing the business.

The "something else" is the key to understanding the whole thing. What is it that clobbered the Spaniards, or the rest of us, to where we no longer had the money to pay the note???

Squeeky Fromm, Girl Reporter

Thu, 06/14/2012 - 17:00 | 2527228 CommunityStandard
CommunityStandard's picture

Except trucks are expected to lose value, and the notes are designed to take that into account.  Housing notes (mortgages) were designed when houses were APPRECIATING.  Borrowers frequenently paid little to no down payment, had interest only payments, adjustable rates, balloon payments, and even NEGATIVE AMORTIZATION.  The idea was that when the home appreciated enough, the borrower could refinance into a fixed term / fixed rate.  However, home prices started to decline, and borrowers found themselves not only underwater, but unable to pay their complex mortgages.

Thu, 06/14/2012 - 17:45 | 2527343 SqueekyFromm
SqueekyFromm's picture

True, taxwise, big trucks are depreciable at an accelerated 3 year life basis, while most truck financing is over a 5 year or longer term. Down pays on new trucks are usually pretty flexible particulary when truck sales are slow.  BUT, as you also note, "[home] borrowers found themseves unable to pay. . ." Why???

What was it precisely that made them unable to pay??? If the monthly note increased a significant amount, then that would explain the inability on those particular loans, but how many of the notes were adjustable rate??? And, did they have these kind of ARMs in Spain? If the mortgagors lost their jobs, and thus could not pay the note, what mechanism caused them to lose their jobs??? If certain people were not paying their notes, while staying in their homes for an extended time, then there should be MORE disposable income, not less, and thus an increased demand for other goods and services.

It just looks to me like there is some missing link between the decline in home values, and the crash.

Squeeky Fromm, Girl Reporter


Thu, 06/14/2012 - 19:13 | 2527535 Ropingdown
Ropingdown's picture

I live in the US but own a home on the south coast.  Our basis is very low.  No mortgage.  Surrounded by old friends. Prices haven't slipped that much at the beach in good sub-divisions.  However, unemployment of adults has sky-rocketed, affecting primary residences and mid-level or cheap vacation condos of people who live inland [Madrid, Seville, etc.].  The typical mortgage is indexed, which is good for time being but later who knows.  You can't walk away from a mortgage easily in Spain.  The market is much like SoCal, but more extreme, with no jingle-mail allowed.  The vast over-building was mainly of middle and lower-income condos well away from the beaches, and they will be in over-supply for a decade or more.

Thu, 06/14/2012 - 18:20 | 2527429 GreatUncle
GreatUncle's picture


Providing the debt does not far exceed you earnings then it is serviceable and still viable. Most indebted countries will never repay their debts anyway, servicing them until such time as the debt becomes worthless. That is all they learned to do. You quote how they behave admirably and it became systemic. What do you notice is missing though.

This trick.

We forgot to develop ourselves as nations preferring to rely on the method above. We have now forgotten how to do anything origional, be creative and earn an income from something instead of relying on the deflation of the value of the debt.

The problem.

The debt is not deflating away as fast as we want now so in relative terms the debt grows. An assumption was that it would always be possible until now and out rolls QE to make it so. The "deflating part forever" assumed that infinite growth is possible and not true.

We became complacent that we could utilise the method of deflating the problem away forever. This is the "kick the can down the road" only for it to be there when you reached where it stopped.

Thu, 06/14/2012 - 19:06 | 2527512 Ropingdown
Ropingdown's picture

I think you meant "inflating the problem away" and Squeaky meant "incentive" not "disincentive."  Or not.

Thu, 06/14/2012 - 16:42 | 2527174 Mark123
Mark123's picture

I just wish prices would crash in Barcelona.  Maybe I could pick up a Gaudi building on Pasaig de Gracia for $55,000?  tapas and sangria baby!

Thu, 06/14/2012 - 20:36 | 2527745 prole
prole's picture

That's the real question amigo, If RE is crashing so much, when can I grab a couple ounces of the precious and get a nice seaside house in Spain/Ireland? Or landside house?

Thu, 06/14/2012 - 17:10 | 2527248 goldinpenguin
goldinpenguin's picture

If Irish prices have dropped 50% and Spain only 22% then I'd say Spain will easily do another 25% down.I assume a lot of homebuyers in Spain have been Germans, Brits etc and if they think there is a possibility of A) another 25%+ downleg and B) possibility of Spain bombing out of the Euro zone then I think the Euro zone bargain hunters will be sitting on their wallets and sales of Spanish villas will be muerte.


The Spanish banks haven't been accurately reporting the RE losses and the 22% decline is a joke, it's got to be 2X that!

Fri, 06/15/2012 - 06:51 | 2528625 tonyw
tonyw's picture

I can confirm from my spanish banker contacts that banks have been reluctant to put properties up for auction to determine the real value since that would force all their other property loans to be written down. I have also been told there's still another 20-30% to go.

The situation in Ireland was similar with few properties being auctioned until recently but this si now starting to get going so if anyone fancies a property back in the "old country" keep your eyes open.


Thu, 06/14/2012 - 17:27 | 2527299 rufusbird
rufusbird's picture

Doctor to the patient. "you have a sexualy transmitted disease. Have sex with everyone you know and dilute it. That ought to cure you."

Thu, 06/14/2012 - 20:33 | 2527729 mjk0259
mjk0259's picture

Those homes were built largely for foreigners not Spanish citizens. The prices depend mostly on what goes on in other countries not Spain. Decreasing prices doesn't help sales but as the article says prices are still way higher than 10 years ago. Not the end of the world.

Thu, 06/14/2012 - 22:47 | 2528126 franzpick
franzpick's picture

Home Prices To Drop Another 25%: Disinformation sites and shills such as Calculated Risk and Case-Shiller take note, and stop thinking you can gain anything by happy-talking us all the way to the bottom in 2015, or later...

Fri, 06/15/2012 - 03:21 | 2528494 Floodmaster
Floodmaster's picture

European banks confront a massive housing bubble. Europe and Spain are in denial -> Average House Prices in Barcelona:: € 588K !!! European housing statistics are hard to find or non existent , you must go to Kyero and other sites and see for yourself.

Fri, 06/15/2012 - 05:55 | 2528597 Alejandrito
Alejandrito's picture

housing bubble blast-------->bank failures------>the taxpayer pays taxes to the recapitalization of the banking

Fri, 06/15/2012 - 05:57 | 2528598 Alejandrito
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