According to the latest Consumer Confidence Index (CCI) for December, published by the National Research Centre (CIS), it is not only the real estate market experts who predict that housing prices in Spain will continue to fall, despite the already large drop which they have suffered since the beginning of the crisis, of more than 30% on average. The majority of Spanish think so too. More than half of respondents surveyed (52.7%) believe that houses will continue to depreciate during the next 12 months and another 37.1% think that their prices will remain the same. Only 4.9% foresee an increase in prices.
Compared with the data for November, these percentages reflect how more and more people now believe that house prices will continue downward. In the previous statistical survey, 50.2% were of the opinion that prices would fall in the future and 40.2% predicted that the cost of housing would remain as it was.
El Mundo reported that those surveyed who currently predict further discounts on home prices, based their answer on one fundamental difference: the decrease in demand. 40.9% of respondents justified their answer taking this factor into consideration. Another 31.4% said that the fall in purchasing power will cause house prices to keep falling, and 27.8% feel that the excess of stock will keep prices stable.
In response to the CCI question on whether those surveyed had any plans to buy a house next year, 97.3% ruled out this possibility, while only 2.1% claimed that buying a home next year is among their plans. The difference between these two percentages is slightly wider than in November, when 96.8% of respondents were not contemplating the possibility of buying a home and 2.7% said they were.
The CIS compiled these results from 1,206 interviews conducted between 17th and 19th December with people of both sexes aged 16 years or over, in Spain’s 17 autonomous regions and the autonomous cities of Ceuta and Melilla.
The above article was originally posted on Kyero.com and it can be read here.