Mortgages decline 47% year on year.This might not come as a shock to most of us, but recent reports have emerged from the National Statistics Institute (INE) explaining that in February of this year, there were 26,415 new mortgages on homes granted, which was 4% less than last month and 47.1% less than the same month last year.

These statistics are based on registered mortgages, which only become accessible 2 to 3 months after the property purchase has been complete and signed. What this information tells us, is that after 22 consecutive months of decline; the impact of the crisis is far stronger then when it first started.

Tourist increase in Spain According to the Survey of Tourist Movements in Frontera (Frontur) released by the Ministry of Industry, Energy and Tourism, Spain received in the first three months of the year 9.18 million international tourists, representing a 2.6% increase over the same period in 2011.

The United Kingdom, Germany and France were the countries from where most tourists arrived during the month of March, which saw 3.6 million visitors, an increase of 5% than the same month of 2011. Italy was one of the fastest growing markets, but it was the number of British travelers that saw the biggest increase of 3.5%, with the Germans up by 2.7% and the French by 1.4%.

Property Bubble in SpainIt might not be yesterday’s news for many countries, but the real estate crash of 2008 has caused devastating affects on many countries and majority of you may be interested to know the role of the banking institutions before and after the crash.

Before:

1.The primary role of banks was to allow individuals to borrow unlimited amounts of money for a mortgage which in most cases was more than 100% of the value of the property and if necessary an appraisal was done with inflated values.

The reason for oversupply of liquidity was twofold, firstly the public were left feeling happy with their access to cash and secondly with this amount of money floating around the market it pushed up the prices of house dramatically.

Buying a Property in Spain, yes or no?As the world still struggles to come to terms with the worse crisis in decades, coupled together with political agendas and uncertainty, many of us might feel gloomy about the future of the EU zone and Spain in particular.

Some financial experts are saying that prices of properties in Spain will continue to fall in the future... This might be true, but let us not be fooled. Yes in various parts of Spain there is a property slump where prices have dropped between 25% and 40% since the peak in 2008 and will probably continue to fall due to the over valuation of these properties when they were first built or bought.

Spanish House Prices Fall in First QuarterThe first quarter of 2012 has seen the prices of Spanish housing fall by an average of 3.4%, which in turn has reduced the standard cost per square meter by 2,013 Euros, according to local sources and statistics. With the close of the first quarter of 2012, all regions have seen a decrease in prices over the last 3 months.

The reasons why Spanish property prices have continued to fall is due to a few factors, with the main obstacle being the difficulty to obtain a Spanish mortgage. At the same time, there is a continual fluctuation in prices due to the fact that the government is forcing local banks and real estate agencies to adjust the property prices.

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