Jump to content
House Price Crash Forum
TheCountOfNowhere

More Good News From Spain, Prices Still Failing, Only Slower

Recommended Posts

http://www.thinkspain.com/news-spain/25972/home-values-fall-011-in-q1--lowest-reduction-since-2008-and-with-price-rises-in-coastal-resorts?utm_medium=email&utm_source=sub_newsletter&utm_campaign=newsletter_20150607&utm_content=news_2302

"HOME sale prices fell by 0.11% in the first quarter of 2015 - but this is the lowest drop in value since the start of the financial crisis," - Good.

"when the bursting housing bubble led to property prices plummeting by an average of 30.4%." - Lucky them

"This remains great news for anyone planning to invest in a home in Spain, since a reduction in the ongoing fall in values - calculated at 0.7% year-on-year - means long-term, all signs are pointing to bricks and mortar going up in price and providing a healthy return in years to come." - Pull the other one...

"Whilst the UK suffers from a housing shortage nearing crisis point" - apart from the 1 million+ properties listed for sale on right move

"But as home values are still dropping slightly," - 8 years on, like the North og Englad, prices still dropping....in Real terms them must be down 60-70% !!! How are spanish wages doing...

Buy now...before you miss out.

Share this post


Link to post
Share on other sites

I seen flats in spain going for the credit limit on an interest free credit card!

You know its getting bad when a house is cheaper than a decent second hand caravan.

I just seen 20k shaved off a flat where I am looking here, but I will wait this bitch out there is no bottom :)

Share this post


Link to post
Share on other sites

Great, classic, article, full of timeless clichés: a breath of halitosis from an aged vagrant...

I particularly enjoyed:

"[spanish property] has now become an excellent alternative to a pension fund - but unlike a traditional retirement plan, it is one that the investor can use for some memorable holidays in the meantime."

and:

"property in the Balearic Islands went up by 0.1% and in Andalucía, the southern belt of the mainland, by 0.05%."

Share this post


Link to post
Share on other sites

Generally Spain's property market is still cooling (towards normal after a huge boom). There is quite a way to go.

Three things are noticeable along the Costa del Sol

1. The specific location / resort matters, a lot. Some of the traditional holiday destinations are very run down now and the high (youth) unemployment - especially out of season - brings all the problems that you would expect. Other places along the coast are dramatically better: much nicer places to be and have more visible investment in facilities (state and private) going on.

2. The specific property matters, a lot. A significant number of the properties built in the boom weren't built to the very best standard. Some were. As there are plenty of properties for sale, the better built ones sell before the less well built ones. Some of the less well built ones are, imo, unsaleable. Similarly, some developments look very run down whilst others look beautiful - a measure of how well the community is run and how well it is funded: if there are lots of empty properties on a development, chances are there are a lot of community payments not being made. Less money = less maintenance and fettling of communal areas / facilities of course.

3. New builds are in the pipeline - site preparation started for instance. However, the Developers are more cautious about starting until they have sold enough units and buyers are cautious about paying deposits when a preliminary build completion date isn't even on offer (yes, pay your deposit now and we might, if we sell another 50, start building isn't the best sales line!). In addition, local councils are stricter across the board (so if the development conditions include building a park somewhere else in the town, the park has to be built before the development can start)

Share this post


Link to post
Share on other sites

I seen flats in spain going for the credit limit on an interest free credit card!

You know its getting bad when a house is cheaper than a decent second hand caravan.

I just seen 20k shaved off a flat where I am looking here, but I will wait this bitch out there is no bottom :)

What sort of areas are you talking about ?

Share this post


Link to post
Share on other sites

Generally Spain's property market is still cooling (towards normal after a huge boom). There is quite a way to go.

Three things are noticeable along the Costa del Sol

1. The specific location / resort matters, a lot. Some of the traditional holiday destinations are very run down now and the high (youth) unemployment - especially out of season - brings all the problems that you would expect. Other places along the coast are dramatically better: much nicer places to be and have more visible investment in facilities (state and private) going on.

2. The specific property matters, a lot. A significant number of the properties built in the boom weren't built to the very best standard. Some were. As there are plenty of properties for sale, the better built ones sell before the less well built ones. Some of the less well built ones are, imo, unsaleable. Similarly, some developments look very run down whilst others look beautiful - a measure of how well the community is run and how well it is funded: if there are lots of empty properties on a development, chances are there are a lot of community payments not being made. Less money = less maintenance and fettling of communal areas / facilities of course.

3. New builds are in the pipeline - site preparation started for instance. However, the Developers are more cautious about starting until they have sold enough units and buyers are cautious about paying deposits when a preliminary build completion date isn't even on offer (yes, pay your deposit now and we might, if we sell another 50, start building isn't the best sales line!). In addition, local councils are stricter across the board (so if the development conditions include building a park somewhere else in the town, the park has to be built before the development can start)

I have a look at some places on the costa del sol and almeria now and again.

I see plenty kite flying still ( probably from Brits ) and not many bargains about at the mo. It seemed to me 6 months ago some people thought the boom was back.

Share this post


Link to post
Share on other sites

I have family in Spain and it was really crazy at one point. I knew people who couldn't sell at 80k Euro and at the same time people were building more flats hoping to sell at 120k Euro! Surely property developers check what the going price is before the build?

Share this post


Link to post
Share on other sites

I have family in Spain and it was really crazy at one point. I knew people who couldn't sell at 80k Euro and at the same time people were building more flats hoping to sell at 120k Euro! Surely property developers check what the going price is before the build?

I know someone who knocked back an offer of 350K euros for a 3 bed town townhouse in 2007, said it wasnt enough.

Sold eventually for 200 euros last year.

The scary thing is not the price they eventually sold for but the insane price someone was willing to pay at the peak of the lunacy.

Same sort of insanity is happening in the UK right now.

Edited by TheCountOfNowhere

Share this post


Link to post
Share on other sites

It is hard to a see a recovery in the Spanish market with so many people leaving the country. In fact, since 2010, more people have left than arrived.

During 2007 474,000 new households were set up. In 2014 the equivalent figure was 117,000. Meanwhile, with poor employment prospects and the highly publicised evictions, there is not surprisingly a trend amonst young people to rent rather than buy.

The number of unsold new builds at the end of last year stood at around half a million and unfinished developments are everywhere.

Yes, people are talking up the recovery at the moment - a gigantic 0.9% growth - but it is election year and no one in Brussels wants a Tsipras type in Spain. More than likely, we will soon see Trampa on this thread telling us that Spain is booming. But the 23% unemployed don't see it that way.

I am sure it varies from location to location, but prices have been dropping on average 3% a year and may well continue, so much unsold stock.

So, yes, a fine investment opportunity . . . take your pick, Spain or Bulgaria . . .

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   43 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.