Spanish home sales fell 41% in April to June from a year earlier; this was a larger fall than the 30% drop in the first quarter of 2011.
The decline follows after Spain over tax deductions for property purchases on 1 January. These had been acquainted after the 2008 housing market crash.

The fall in sales also reflects the ongoing weakness in the Spanish economy. A new tax cut on the purchase of new homes was acquainted last month.

This cuts down VAT on the price of new homes to 4% from 8% till the end of the year. Between April and June, 90,746 homes were sell across Spain, said the government.

There are presently an estimated 1.5 million unsold homes in the country. Spain has an unemployment rate of 21% – the maximum in Europe.

Its government is also enduring cost cutting efforts to try to decrease the country’s budget deficit, a move that is further increasing job insecurity.