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Spanish Housing Re-Plunging
The crash in home prices in Spain is re-accelerating. Bloomberg data shows the drop in Q4 as the third worst drop YoY ever and the fastest rate since September 2009 taking prices back to March 2005 levels. As WSJ reports, Spanish banks hold more than EUR400 billion worth of loans to the construction and real-estate sector, back by collateral that is now losing value at almost record paces. Is it any wonder that the banks are seeking state-guaranteed debt issuance (as no-one will touch them directly) as "the outlook remains bleak, with the demand for housing expected to shrink throughout 2012 with debt-laden households struggling to cope with a devastated labor market and limited access to credit." Perhaps today's disappointing Spanish auction (weak demand) is the first reality-seeking canary in the LTRO-enthused coalmine of Spanish and Italian self-dealing as the real-money vigilantes start to bet actively against Spain in favor of Italy (which trades tight of Spain for the first time this week since August). Spanish banks need more cowbell LTRO (but what collateral is there left) to fund more support for their local govvies.
Spanish housing (and unemployment) is re-accelerating to the weak side again...
and markets are not missing that point as Italy now trades inside of Spain again having hugely outperformed post LTRO, but more critically, Spain is now widening (as opposed to not tightening as much)...
Chart: Bloomberg
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Ole!
Putaz
Joder!
foyame chicas!
Paging El Bernanke.
El Bernanke al telefono blanco de cortezia.
El Bernank de mierda
foyame chicas!
Prices in Madrid are still high. Nice flat will set you back 900k usd for something nice. I rent for now and its not cheap. Cheap if you want to live outside the center 15min out like sencena.. The day will come when I convert my chains for property. Still a few years out.
you can find a decent puta for about 50 euros though
funny how the world works....not too long ago, the eurocentric imf world bank vampires were busy sucking the lifeblood out of south american countries, providing them onerous loans, forcing austerity upon them, having their crony corporations step in and drain them of their natural resources......forcing the countrymen to leave their homelands in search of a better livelihood in spain....now, the same usual vampire suspects are busy feeding off of spain (and other delicious piigs), forcing spaniards to flee their homeland for heretofore unheard of places such as brazil, argentina, chile, etc.........the irony is just too much......
just wait till the cannibals turn their eyes towards u.s. shores..............it wont be pretty..............
The real reason "they" put up a fence was to prevent 300lb joe sixpack from escaping his debt obligations in the US.
No mercy for Spain until they surrender to the Banksta Collective, like Italy and Greece.
The pain in Spain has never been more plain.
Spanish homes priced in Apple? Eh, not so bad
Naw, the new currency is TIDE. It's a great inflation hedge, too. A little bit of a pain to store as the biggest bottles are still only $20 equivalent in the current market, but it is useful, and you can buy drugs with it supposedly.
Tide is good. I read The Bernank may use it to sterilize his next QE. Maybe even bleach the QE a little with it unless it's color safe.
This is good. Needs to happen everywhere. Especially in China, Australia, Japan and Canada where the real estate bubbles are insane.
misery loves comfort
In Toronto (worse in Vancouver) you can buy a complete piece of shit DUMP - for $500,000...
and,
You cant even live in the damn thing yet?!?!
Why-why the fuck are people buying these hunks of shit for half-mil...and you cant even live in it? It needs 50-100k in upgrades... Unreal.
Why-why the fuck are people buying these hunks of shit for half-mil...and you cant even live in it? It needs 50-100k in upgrades... Unreal.
Because ``real estate always go up``!
A complete piece of shit DUMP in Vancouver is a cool million.
But not for long.
Is this why Canadian fiat is a loonie ?
I seen that too iPads...
On the National - a medium size bungalow - on a 40' by 60' lot (approx) and when they said it was $1,000,000 - i swear to you me and my gf both lol at the same time.
Unreal...
AND! it sold in days.... within days!lol
Check this shit out.
http://www.realtor.ca/propertyDetails.aspx?propertyId=11642714&PidKey=54...
Fucking Chinese criminals siphoning their bribe money into Canada, they should be shot on arrival.
OMG!!! Hehe... I guess it looks like a good value if you compare it to Singapore or Hong Kong prices.
Asian buyers need a place to hide store their wealth and a place to escape if needed. They don't want to come to the US because of tax and reporting reasons, hence the flows to Vancouver.
They're buying so they can later get the Gub'ment to Bail them out and reduce thier mortgages claiming they were taken advantage of.....
One word: Asia http://www.bloomberg.com/news/2012-03-13/asian-buyers-buoy-new-homes-in-california-s-orange-county.html
...and the Euro is surging on this bit of events.
Imax 3d presents.......
US HOUSING BUBBLE PART 2?
2005 levels?????, shiiiit man, that would be a dream for the u.s.a................deleveraging full speed ahead scottie.....
Too bad they can't post Spanish Youths as collateral and kill 2 birds with 1 stone...
They might be useful collateral for war perhaps-but only against Italy and Greece.
I hear the ECB takes candy wrappers and slightly used toilet paper as collateral.
probably being too generous there
i hear fluff from hoover bags are AAA at the ECB
Long jamón
and soylent green. red. yellow, black and blue.
Spanish govt to be replaced shortly by Goldman Sachs appointee... then they will be able to sell all those millions of empty rotting apartments along the Costa to muppets...
"muppets" like Moi
i'm looking to pick something up in the Med area in a few years... i want luxury for peanuts. Don't ask, don't get
puta madre el pais es una mierda!!!
But housing never goes down!
The Spanish dream: To get out from under a bullshit dream where your home is your biggest "investment" and live a life free of debt. Did I say Spanish dream? I meant to say western dream.
It's not plunging, it's resting
It's pining for the fjords.
In a country full of broke, unemployed people, why wouldn't housing prices be plunging?
Can't be a problem for us. Spain is across the ocean and far away. Keep buying all. Move along.
Tyler, AAPL is red. Do something please. TY>
If the place is on sale, why not go shopping?
the shops are closing here in Marbella and Barcelona ...prime streets are still full but just off prime and it's almost every 3rd shop is shuttered
same everywhere i go in Europe in fact ..retail is defo not what it was!
Spanish banks hold more than EUR400 billion worth of loans to the construction and real-estate sector, back by collateral that is now losing value at almost record paces.
Was it ZH i read the banks are holding (hiding) over 2 million vacant properties on their books, 1 million in the Costa/Coastal regions a product of rampant over-building (ok rampant jet-propelled bank credit bubbles)
Give it a few years to price meltdown and i'll be ready for a 'Desperation Sale'
All the banks need to do is what Italian banks have done: issue new bonds, take bonds to ECB to use as collateral for cash. There, fixed it!
More losses to come. I have a German in-law who retired in Germany and bought a $520,000 house in a German village on Spain's south coast during the Die (or is it Das?) Boobble.
The problems ..and costs then started.
First, the federal gubberment there said that developer had no right to the property in the first place and no right to sell RE...the title was bad for all these expesnive houses....invalid! Mejor problemas costing each house owner about $120,000 in legal fees to fight the central gub'ment there and finally draw a settlement....an additonal $100,000 PER OWNER.
Then came the plunge in prices...now it's worth about $275,000 he said...and that's if you can find a buyer! One problem besides a non-existent market is there may still be title problems (sould familiar?) so no one want to buy an expensive legal problem.
Good luck! I read Vancouver, Australia and the Netherlands may be the next to "pop".....
Hay Carumba!!!!!!
real-money vigilantes
betting on the spanish/italian bond spreads
brilliant!
Spanish real estate is overpriced by an estimated 33%,but the scary fact in Europe is that French,Belgian,Italian,Irish and Swedish real estate is probably even more over priced. So unless you're going to invest in Bulgaria or Latvia,avoid buying in Europe.
Last time I checked, the prices in Jurmala, Latvia were still insane. I guess the Russian mafia likes to buy their summer houses there.
Regarding Spain... Fin de los tiempos, perraz!
Como dijo Senor Obama: Esperanza y cambio, chingados!