Goldmans warns Spanish property 'needs to fall another 10%'

Spain's collapsing residential property market is still overvalued, banking experts have warned.

Goldman Sachs analysts said house prices in the embattled European Union economy need to fall another 10%, according to a Telegraph report. They added that would undoubtedly pose fresh problems for the country's troubled banks. As well as claiming that Spanish property is still overvalued despite a 30% collapse, the bank called for a restructuring of the country's lenders. The warning comes hot on the heels of dire news on the Spanish economy. The government said it expects the economy to contract by almost three times more in 2013 than it had previously forecast, forcing Madrid...