Updating Country Property Market Andalucia, Casares, Gaucin, Ronda
10-02-2009
According to the Ministry of Housing, residential home sales fell by 33% in the first 9 months of 2008 compared to the same period the year before, with resale activity falling 47%, and new build 16%. The National Institute of Statistics (INE) has sales down by 29% over 11 months to the end of November, with November itself down an annualised 37%. The average listing times rising from 70 days in mid-2007, to 215 days at the end of 2008. New mortgage approvals fell by 35% in the first 9 months of 2008, compared to the same period the year before. Euribor is now around 2%.
Time to Buy?
With the low Euribor and at least 30% cash in hand you will have a good possibility that the banks give you a mortgage again. Average property prices and transactions seemed to be in between 20-40% off the asking prices of 2007. Some vendors are more realistic these days specially when they bought their properties more than 6 years ago. Still the asking prices are generally from 2007 due to a lot of speculation. Bank valuations are down as well. Building costs are going down due to un-emploiment and lower material costs.
There are still buyers around, but only if the price is right. Buyers are now mainly new buyers who are re-locating, lifestyle buyers who are looking to make their best deal in life. Not too many British buyers but Dutch, Belgium, Scandinavian and German buyers are still around. Buyers are looking for Top locations, value for money. Badly located farm houses on a minor location and low quality with too high prices are just not selling. There is still demand for large Country Properties, with the right prices. (on new bank valuations = 20-25% off) According to BBVA, a Spanish bank, property prices will fall 5% in 2009, and 10% in 2010. Between 2009 and 2011 the bank forecasts that prices will fall 25% in real terms. Foreign banks such as UBS and Credit Suisse forecasts that prices will fall by 30% before the market turns around. Yet many vendors are still denying the new status quo and continue to ask silly prices, with the result they don’t sell. That means that average asking prices do not reflect the correct property values. There is a gulf between what many vendors are asking, and what properties are actually selling for. Please discuss with Villas&Fincas these matters so we can approach the vendors in a appropriate way. Therefor some genuine bargains can now be found. There are repossessions but very often they are in bad locations and or they are not what you are looking for. But after you have done the intake with Villas&Fincas and discussed your requirements we could see if there is something available. Often professional hunters got the deals already. But we are sure we can find you in 2009 a good deal.
