In January, a study by the Universidad Autonoma de Barcelona overestimate the number of homes in Spain at around 20 citation needed .
In March, Brussels calls for caution in granting mortgages in Spain, France and Ireland has increased the debt without reducing the consumption, which puts families at risk to changes in income or changes in types Interesting.
In April, once again celebrates the Real Estate Exhibition in Madrid. Estimates of it, 2005 is the year in which the highest number of housing units were completed and are visaron: more than 800,000, the largest of the European Union. That same month La Caixa in its Monthly Report navarre 290 out that bubble and predicts a “mild slowdown” in the property sector. Also in April the International Monetary Fund warns again of the high price of housing in its report “World Economic Outlook Globalization and inflation” Simultaneously, the Euribor rises to the level of six years ago, located at 3.22 . Forecasts showed that in April 2007 could be at around 3.75 – 4 . The Bank of England warning of the use of flexible mortgage which allows the amortization of fees according to the time citation needed .
In May, a demonstration is online at the main Spanish cities demanding the right to adequate housing
In June, the ECB raises interest rates by quarter points, to 2.75 , and the Bank of England in June 2006 Newsletter considers the most plausible hypothesis is that of an overvaluation of housing compatible with a gradual absorption of the discrepancy found between the observed prices and their equilibrium level. Thus rejecting the hypothesis of a bubble and a price equilibrium. The overstatement is estimated to 29 at end 2004 (latest data used in the study). In the same text mentions several studies that examine the difference between the price of housing in Spain and an estimate of its equilibrium level in the long term.
In July, BBVA warning of the risk of sharp correction in house prices due to the delayed adjustment estate
In August, the ECB announced a further rise in interest rates to 3.00 .
In September, the Spanish Mortgage Association (AHE) warned that half a mortgage you can make up to 1300 euros per year over the next 24 months
In October, the increases in interest rates by the FED made in USA. UU. the housing market undergoes a rapid decrease in the number of buildings started and sold That same month, the real estate portal idealista.com announced that, according to their data, housing prices stagnate used in the third quarter in the big cities while the ECB again raise interest rates by quarter points, to 3.25 and its monthly newsletter published in its intention to continue raising interest rates to control inflation The news about the cost of mortgages begins to appear in the press, to put the interest rate levels in 2002 On October 19 published pricing statistics of the Ministry of Housing observed a slowdown in the interannual frank and drop the data in the last quarter in 13 provinces, also lower than the CPI increases in others. Some analysts describe as a change in the trend, or even puncture the bubble. The housing market seems to have entered the soft landing was announced by the Ministry of Housing. The promotions take half to three months more to sell than last year and the price does not rise more than inflation in 2007. After several announcements by the ECB savings have echoed the comments and have stressed that it is possible abrupt adjustment in house prices. The main factor in this realignment would be the high level of construction that leads to an oversupply, and that continues to increase despitelower demand. Blas Calzada, former president of the National Stock Exchange, says if not remedied exist a double bubble: stock and real estate.
In November, the ECB kept interest rates at 3.25
At year end Miloon Kothari, the UN rapporteur, prepared a critical report on the housing situation in Spain in the complaint that are violating human rights in housing. In particular, reporting a real estate mobbing unparalleled elsewhere in the developed world and rampant real estate speculation that would have left 25 of the population outside of the housing market.
- The Home Mortgage Book: Insider Information Your Banker & Broker Don’t Want You to Know by Dale Mayer (Paperback – Jan 15, 2008)
- The Complete Guide to Reverse Mortgages: Turn Your Home Equity into Instant Income! by Tyler Kraemer and Tammy Kraemer (Paperback – Sep 1, 2007)
- Tips and Traps When Selling a Home by Robert Irwin (Kindle Edition – Nov 4, 2008) – Kindle Book