As I reported two weeks ago, RR de Acuña & Asociados expects home prices in Madrid, Barcelona and other big cities to fall a further 30pc in a relentless slide until 2018.
Fresh losses could reach 50pc and drag on for 10 to 15 years in parts of the overbuilt sunbelt. “The market is broken. We calculate that there are almost 2m properties waiting to be sold. We have made no progress at all over the past five years in clearing the stock,” said Fernando Rodríguez de Acuña.
“There are 800,000 used homes on the market. Developers are sitting on a further 700,00 completed units. Another 300,000 have been foreclosed and 150,000 are in foreclosure proceedings, and there are another 250,000 still under construction. It’s crazy.”