The Bank of Spain finally has some good new for the Spanish property market. For the first time since December 2006 the amount of bad loans on the market has finally dropped.
Confidence is still slow to return as market analysts have noted that interbank activity has remained subdued.
“A lot of aspects of the market are back to normal. But one thing is to look at levels and another is to look at the activity around the number and we see activity is still fairly subdued,” said Gianluca Salford, a strategist at JP Morgan in London.
“Banks are still in a deleveraging process and it’s not clear lending by the banks is the best use of their money at this point in time,” he said.