Resale asking prices remain stable in Spain18/02/2013
Resale asking prices in Spain remained stable last month following 36 consecutive months of declines, according to the monthly index produced by Spanish property portal Fotocasa.
Resale asking prices in the Fotocasa database averaged €1,890sqm in January, almost the same as in December. That is the first time there has been no monthly decline in prices since February 2010.
According to Fotocasa, asking prices actually increased in popular regions like Murcia (+1%), The Canaries (+0.7%), Andalucia (+0.7%) and the Valencian Community.
The positive Spanish property price index has led to a number of articles asking if now the ideal time to buy a property in Spain is now. But with the Spanish economy in disarray and a glut of new homes still on the market, the reality is that a full recovery is still a long way off happening.
Spanish property experts Mark Stucklin commented: “Murcia is a region where a resale housing stock of not particularly good quality sits on the market alongside a glut of new homes. Asking prices in the Fotocasa database may have risen in Murcia in January, but I find it hard to believe that real prices went anywhere but down.”
ies, these buyers of Spanish property are, mostly, middle-aged couples (between 50 and 55 years), looking for a holiday home for their retirement. The Swedish real estate agency said that “80% of these buyers contact us via the Internet or in real estate fairs in Sweden. The majority take on a mortgage in their own country, sell shares, or buy with their savings”.
According to data from the General Council of Notaries, the average price of homes purchased by Swedish citizens was 252,766 euros. In Andalusia, 29.4% of the purchases made in the first half of 2012 were non-resident foreigners. “The average sale price for us in 2012 was 164,000 euros, with large differences between different areas. For example, in Torrevieja, the average price is 114,000 euros while in Nerja it is 245,000 euros.”
Pritchard added: “The current domestic Spanish property market is reeling from one body blow after another however; our sales volumes prove this has not deterred foreign buyers purchasing second homes. Many view the Costa Blanca as the preferred holiday home destination; with warm seas, sunny skies, plenty to do day and night and more cheap flights per day than you could shake a stick at, it is a serious lifestyle option for fed up Brits looking to escape the cold.”
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