Spanish Home Sales Decline as Unemployment Concerns Deter Would-Be Buyers - Bloomberg

Spanish Home Sales Decline as Unemployment Concerns Deter Would-Be Buyers - Bloomberg: "Spanish home sales decreased for a third month in November as concern about unemployment and the outlook for the nation’s economy deterred buyers.

Home transactions fell 6.2 percent from a year earlier, after a 17.7 percent drop the previous month, the National Statistics Institute said today in an e-mailed statement from Madrid. The decline in sales coincides with a 24 percent slide in mortgage lending as Spaniards held off from buying homes until the outlook for employment improves.

Spain’s economy stagnated in the third quarter, leaving the unemployment rate at more than 20 percent, the highest in Europe. The economic recovery may be further undermined by the deepest austerity measures in at least three decades as the government has cut public salaries and raised taxes to stem a surge in borrowing costs.

The gap between Spanish and German 10-year borrowing costs rose to 236.3 basis points yesterday after Spain sold 5.5 billion euros ($7.4 billion) of Treasury bills. The spread reached a euro-era high of 298 basis points on Nov. 30, almost 20 times the average in the first decade of monetary union."

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