I have been asked many many times, “Do you think property prices have gone as low as they can go” Oh, if only I had a crystal ball.
French clients we had last week said they thought that this was a good time to buy as their information was that prices have bottomed out and the only way is up. It is true to say that the French housing Market is not as depressed as the Spanish and this could be the reason for the optimistic view.
Trying to keep abreast of the housing market in Spain I am gob smacked by how much drivel I am reading with headlines “Buoyant Market” or “Property prices are on the increase” ………
This is pure fantasy.
I firmly believe that the Spanish housing Market has reached an attention-grabbing point In terms of the level of interest from UK. The market is very busy at the moment, you notice I did not say “buoyant” and there are lots of potential buyers and yes I did say “potential” coming from U.K However, putting their money where their mouth is another story; they are still afraid to commit. The Costa Blanca Housing Market is the highest it has been for three years yet Brits are being pipped to the post by purchasers from elsewhere in Northern Europe.
According to my discussions with other agents, the market concurs that enquiries and viewings from Brits outweigh those from other countries interested in buying a property. So why is it that in reality far greater numbers of properties sold are to buyers from elsewhere in Northern Europe?
The worldwide slump is now into its third year. Impatient to move on, the desire to fulfill a dream becomes greater than the need to wait. As builders start pick up again where they left off, many see this as a sign of confidence. As we all know confidence drives the market……..
News reports of a large quantity of unsold properties in Spain; bank repossessions; vendors who must sell at any price; and developers under financial pressure have undeniably ‘wetted the appetite’ of those in the UK with .dreams of owning a home in Spain. Due to the “crisis” they now find themselves in a position that they can afford a bargain.
A small handful of vendors bought during the reign of the peseta or when the euro was strong at 1.68: these early pioneers can take a substantial drop in the asking price and still avoid negative equity.