Years of overbuilding means Spain has around half a million new homes on the market, a Spanish property developer association said on Wednesday.

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Spaniards have borrowed heavily by guaranteeing consumer loans against the value of their homes, which have more than tripled in the last ten years.
Households are feeling poorer since Spanish house price growth fell below the rate of inflation for the first time in a decade during the first quarter.
Expectations Spanish house prices will fall this year have led to a sharp decline in housing demand, especially for second homes, real estate firm CB Richard Ellis said on Thursday.
Spanish consumer borrowing for cars and personal loans fell for the first time in over a decade during the first quarter amid rising unemployment and declining consumer confidence, a financial group said on Thursday.
Credit for car purchases declined up to 10 percent year on year, while personal loans fell around 30 percent during the first three months of the year, according to Spanish credit industry group ASNEF.
"In my 10 years here this is the first time I've seen it, I think it's the first time since the 1992-1995 crisis," ASNEF President Pedro Guijarro told a press conference.
Credit demand is falling as Spaniards are hit by the end of a decade-long property boom and tighter borrowing conditions during money market turmoil.
Spain's government plans to cut its 2008 and 2009 economic growth forecasts to around 2.4 percent and 2.1 percent, respectively, marking the weakest levels since the economy suffered a recession in the early 1990s.
ASNEF warned of a sharp increase in Spain's consumer credit default rate this year after it rose 22 percent to 3.14 percent in 2007.
Spain's overall debt default rate, combining mortgage and corporate credit, is among the lowest in Europe but could triple to around 3 percent over the next two years, banking groups forecast.The property consultancy expected the slowdown to last a further 18 months and for prices to fall.
"That's the amount of time it will take to absorb houses currently on sale," said Eduardo Fernandez-Cuesta, the firm's president in Spain. "The correction in prices has yet to happen."
Years of overbuilding means Spain has around half a million new homes on the market, a Spanish property developer association said on Wednesday.