The families owe 550.000 millions in mortgages
The mortgage debt accumulated by the Spanish families for the housings acquisition overcame for the first time in the history 550.000 million euros on having finished October, according to the last information published by the Spanish Bank. This number, 551.715 millions specifically, supposes an interannual increase of 20,8 %, the lowest valuation of last five years.
From the ends of 2005, the increase of the debts of the families in mortgages slowed down in a notable way, from the reached maximum last November, when they grew to 24,6 % and this situation indicates, according to the experts consulted by Efe, that not only the authorization of the credits is hardening, but the families accumulate a big debt quantity and it is difficult to support the high percentage increases registered in the last years.
At the end of October, the mortgage loans that the families had granted in order to buy a housing had increased in approximately 95.000 millions with regard to the same month of 2005. This number is lower than the interannual increase registered in September, which in turn was minor than that of August and July, what indicates a certain deceleration in these debts.
As a whole, the families were accumulating debts to the financial institutions - not only to buy housings - for an entire amount for 750.678 million euros at the end of October.
The Spanish Bank has warned in several of his bulletins on the risks of an excess of familiar indebtedness. The loans guaranteed by means of mortgage suppose 73 % of three quarters of trillion euros that owe the Spanish families.
Light increase of the saving
But the modest moderation of the increase of the mortgages does not seem to be the only effect that the types increases produce in the families. The report on consumption and familiar economy presented yesterday by Caixa Catalunya includes a progress in the saving valuation. According to the study, the hearths will destine the next year 9,7 % of his available gross revenue to the saving. This percentage supposes an increase of six tenths opposite to the values of 2005 and foreseen for this year. The increase waited in the valuation of saving will reach the next year 15,6 %.
Also for 2007, and according to Caixa Catalunya, the private consumption will always limit his interannual advance to 3,3 % of the family budget, from 4,2 % of 2005 and 3,6 % estimated for 2006. The authors of the study place the fund reasons in a 'readjustment of the economy, partially linked to the effects of the rise of the interest rates and of the oil produced during the first half of 2006 and that they have affected to the confidence of the hearths'.
Nevertheless, this reduction of the increase of the consumption will be moderated because there exist several factors that act in favor of his expansion: a labor market that 'will support his fortitude and dynamism during the next years'; a progression of the available revenue; and a continuity in the growth of the wealth of the hearths, both for the progress of the bag, and for the maintenance of the accumulation of real estate capital.
The report makes sure that the base of the expansion of the consumption will keep on being the strong progression of the occupation. The forecasts for 2006 are 776.300 new jobs, what represents an interannual advance of 4,1 % of the occupation. In 2007 the 750.000 will be moderated lightly even, with an interannual change of 3,8 %.
As for the available revenue of the hearths, Caixa Catalunya foresees an interannual growth concerning 7 % in next two years thanks to the increase of the income proceeding from the gross surplus of development of the individual proprietors (about 8 % interannual), the increase of the wage remunerations (6 %) and the transferences proceeding from the public sector, which would advance to valuations superior to 6 % interannual in 2006 and 2007.
Compared indebtedness
The impressive boom lived by the Spanish real estate market in the last years has taken prepared a resource to the outside financing the same way marked on the part of the families. Nevertheless, the comparison with some OECD countries (Organization for the Cooperation and the Economic Development) plays the dimension of the problem down. According to information of the credit insurer Euler Hermes, the Spanish families accumulate debts equivalent to 110 % of his available gross revenue. A number clearly superior to the registered one in France (63 %) and Italy (43 %). Nevertheless, the biggest economy of the European Union, Germany, presents a level of familiar indebtedness similar to Spanish (107 % of the available gross revenue). And Spain keeps on staying below the levels of the United States (124 %), Japan (120 %) or the United Kingdom (145 %). Where Spain goes out worse stop in the comparisons it is in the rhythm of growth of the prices of the housing and in his relation with the income for inhabitant: 10,4 times, opposite to 6,7 in France or 6,4 in the USA.
Written by Carlos Lopez on December 19, 2006 with 0 comments.
