What is going to push the Spanish Market back up

[Goldberg Global]

Spain is actually after France the second most visited country in the world with 60 million tourists, it is above the USA, yet it is in doldrums.

Any one got any idea what will revamp Spain? And make it a growing and successful market again.

[Gerry Pridham]

Two things will push the market up:

1 Demand from long term lets will exceed supply (not likely in our lifetime)
2 Euribor interest rate will fall (not likely in the short term

conclusion: We are in for a rough ride in Spain, with sales characterized by more motivated sellers than in previous years, and buyers no longer willing to buy at 25% to 30% below bank valuations.

I predict that prices could fall as low as 50% of valuations, or at least until real rentals achievable excluding utilities and community fees are about 6% of capital values. That puts a 2 bed apartment attracting a rent of 600 per month at a value of around 120,000. You will find that such properties are currently over 150,000 with valuations around 200,000. And that's if you are lucky enough to get somebody who doesn't negotiate on rents. I've seen 2 identical villas next door to each other - one with a tenant paying 650 per month exclusive of bills, the other paying 500 per month including bills. The latter is more realistic.

[Landwatch.com]

Have more museums and art galleries!!

[barry uh spain]

What's wrong with paella and the beach??

[Damian George]

Alot of apartments to come down in price.

Report today that the ECB has its head up its.... and instead of hiking interest rates it needs to cut by up to 1%.

Rumours doing the city that the European banks are up to the eye lids in sumprime mortgage problems.

Look for ECB to cut rates this week

[barry uh spain]

Well it looks like the man from the ECB say Non today. But I'm sure this will run and run.

[Damian George]

yip not a lot but lots of rumours!

Think though the states could present better buys especially with interest rates running at a target of 2% and inflation at 4%.

I will post if they cut rates ASAP

[neustria]

Re. Interest rates

Bernanke has been accused by some experts of having given in to the markets when he cut US rates by 75 basis points (0.75%) earlier this week. Trichet has decided to hold firm on Euro rates. The man perhaps wants to prove himself as not being influencable by short term events, and wants to be seen as someone who has his eyes fixed on the Big Picture. And this Picture, in his eyes, is still the danger of inflation in the Eurozone.

Another point which he certainly looks at is the real degree of influence that the US subprime isuue will have on the European economies. It might be argued that the perceived influence is actually overblown. If this is the case, or if the US avoids recession, then Trichet will come out of this with his authority reinforced.
Nesutria

[Damian George]

Societe Generale SA said it will seek 5.5 billion euros ($8.1 billion) in new capital after discovering a case of trading fraud and taking further writedowns linked to the U.S. subprime mortgage market crash.

I think this is the start of the euro downward spiral.

Anyone that goes to spainish costa's will tell you the housing market is over supplied and half completed projects.

Basically EU cant hide the fact it has very similar problems to the US and is a matter of time before people start giving back there keys.

[wood1e]

Certainly going to get tight over the next 12 months...Means we all have to work harder lol