MADRID, Dec 18 (Reuters) - Spanish house sales dived by 36 percent from July to September compared to the same period of last year and housing starts sank by 49 percent, the Housing Ministry said on Thursday.
The ministry said 118,533 houses were sold in Spain between July and September compared to 186,504 in the third quarter of 2007. The number of house starts fell to 75,268 in the quarter.
Analysts say the spectacular collapse of a 10-year construction boom last year is driving hundreds of builders out of business and could send banks' non-performing loan ratios towards 9 percent.
Spain's house builders account for a third of Spain's 1 trillion euros ($1.44 trillion) of corporate debt. ($1=.6955 euros) (Reporting by Ben Harding; Editing by Mike Nesbit)