Pain in Spain's housing market goes on | Money | The Observer

Pain in Spain's housing market goes on | Money | The Observer

Reports on Spain's ailing housing market show sales volumes are down almost 50% since the summer and prices may suffer further falls of up to 30% — with holiday homes in tourist areas likely to fare worst of all.

The Spanish market has collapsed since 2007, with prices of new coastal homes and older houses in inland "white villages" popular with British buyers plummeting 50% or more.

Now Spain's housing ministry – which counts domestic properties as well as foreign holiday homes – reports a record-breaking 48% drop in sales between July and September 2010. This coincides with austerity measures being introduced in Spain, including the scrapping of mortgage tax relief.