Archive for May, 2011

 

May 6th, 2011

Euribor (12 months), the interest rate generally used to calculate mortgage repayments in Spain, rose to 2.086 in April, a change of +8.4% compared to the previous month, and the first time Euribor has been above 2% since February 2009.

On an annualised basis, Euribor is 70.3% higher than it was a year ago (see graph above), meaning higher monthly repayments for borrowers with mortgages resetting now.

Repayments for a typical mortgage (150,000 Euros, 25 years, Euribor +0.25) will go up by around 64 Euros per month, or 775 Euros per year. That will punish many a stretched household budget in Spain.

Interest rates over the last 20 years

Where will rates go from here? Upwards, most likely. The chart above, from property portal Idealisa.com, plots interest rates over the last 20 years. As you can see, we are in a period of exceptionally low interest rates (that are probably incubating the next crisis).

Story by Mark Stucklin

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Posted in Financial & Mortgages | Comments Off

May 2nd, 2011

The Spanish house price index figures for April 2011 have just been released. See the graph and the table below for an up to date overview of the real estate market trend in Spain.

Spanish House Price Index - April 2011

The graph and table data represent the year-on-year evolution of Spanish property values. For example, if the value for August 2009 would be -3.9, then this means that average property prices in August 2009 are 3.9% lower than they were a year earlier, in August 2008.

The graph and table on this page contain up to date information for the past 13 months. For more information, please look at earlier monthly reports, or the historical overview since January 2001.

The graph and table data are based on actual property valuations, as established by one of Spain’s larget independent property valuation companies, Tinsa S.A. They are not based on asking prices or (under)declared selling prices, nor on the statistics as provided by the Spanish Ministry of Housing, and are therefore considered to be the most acurate and reliable source for this kind of information.

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Posted in Property market | Comments Off