House sales down in Spain while mobile phone sales reportedly up

House prices in August were down 15% compared with the same month a year earlier according to figures published by Spain’s National Institute of Statistics released on Monday.

Part of the reason for the drop is the increase in sales tax in Spain, which on new homes increased from 4% to a whopping 10% at the start of the year. However, from 1st August Catalonia increased the tax in second hand properties from 7% to 10% also.

The taxes are clearly stifling the market for property in Spain, which while it was one of the big reasons for Spain’s catastrophic crash, an increase in sales should help raise more taxes. By increasing the amount of tax paid the amount actually collected is likely to fall.

Source: Xinhuanet.com

Meanwhile the mobile phone market in Spain showed signs of recovery in Spain. While down 4% from the previous year! the number of mobile phone users increased by a little more than 5,000. That figure has been used to show an increase in consumer confidence, but I’m. It so sure. The phone companies are reporting that users are taking them up on cheaper deals; but what about touris who want a pre-pay phone for their holiday? Couldn’t that account for the pick up, as they too might be attracted by mobile phone offers.

Source: Yahoo.com

Tags: Economy, Property, socialmedia