According to Idealista, one of Spain’s largest real estate sites, home prices haven fallen another 2.8% in the second quarter of 2012. The average price per square meter is now under 2,000 euros, at 1,956. Prices dropped in almost all areas. The capital Madrid saw a drop of 2.7% during Q2, completing a drop of 23% from the peak seen in Q2 2007. Prices in Barcelona slid by 2.2%, completing a total fall of 31.1% from the peak in Q1 2007. Prices fell by 3.4% in Q1 2012 and over 8% during all of 2011. So while prices fell at a slower rate in Q2, the falls of accelerated in 2012. The full details are here, in Spanish. Spanish real estate saw a boom and bust: at the peak, Spain was building more houses that Germany, France and Italy combined. The collapse of the construction sector hit the economy very hard. With the current oversupply of homes, Spain’s cement consumption returned to levels last seen in the 60s. The Spanish government is practically safeguarding the banks, but cannot do it on its own. It officially applied for a bailout program, but the full details haven’t been finalized yet. The announcement of the bailout contained at least 8 holes, and also the relative relief provided at the EU Summit is very conditional, to say the least. One of the problems of the Spanish banking system is that nobody believes the banks – many home values haven’t been updated and many underwater mortgages aren’t acknowledged. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Forex Daily Outlook July 2 2012 Anat Dror 10 years According to Idealista, one of Spain's largest real estate sites, home prices haven fallen another 2.8% in the second quarter of 2012. The average price per square meter is now under 2,000 euros, at 1,956. Prices dropped in almost all areas. The capital Madrid saw a drop of 2.7% during Q2, completing a drop of 23% from the peak seen in Q2 2007. Prices in Barcelona slid by 2.2%, completing a total fall of 31.1% from the peak in Q1 2007. Prices fell by 3.4% in Q1 2012 and over 8% during all of 2011. So while prices fell at… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.