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There isn’t enough reliable information about the prices of homes in Spain. Most of the data is based on asking prices rather than on actual deals. A growing portion of assets held by Spanish banks are foreclosed homes – currently estimated at 60 billion euros. If they’ll need to reassess prices, they’ll be in deeper trouble.

This article in the Wall Street Journal displays the problem:

The Ministry of Public Works recently said that the price per square meter of homes for sale in Spain has dropped 11% since the market’s 2007 peak. But data from Tinsa, a large Spanish appraisal firm recently bought by private-equity firm Advent International, show an 18% drop in the same period.

Meanwhile, many smaller firms that are helping banks sell thousands of property assets said average actual sale prices have fallen between 20% and 30%.

If this story evolves, it could add to the pressure on the Euro.

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