PRICES STILL FALLING IN SPAIN

It would appear prices are still falling in Spain, especially coastal regions according to today's Telegraph.  I was unable to post the link.  This article may be useful to people selling at the moment due to the value of the euro, which according to the Telegraph will change shortly therefore giving pensioners more income, which  is good news.  It is however not good news that prices are continuing to fall, but this isn't unique to Spain as many parts of Europe are experiencing the same dilemma.   Whilst here in the UK prices are going through the roof, especially in London and the south east it's just crazy.  Very tempting to sell up and move somewhere cheaper, but where is the question:)

www.telegraph.co.uk/finance/financialcrisis/9768067/Spains-house-prices-to-fall-another-30pc-as-glut-keeps-growing.html

Yep, more bad those, who over the past year or so have been trying to ‘talk the market up’  and tell those who did not agree, that they were wrong.   But, time seems to show were right, and continue to be so.

That article is dated 2012.

On my browsers it shows 29 th April 2014, but I see it does quote an earlier news item too

AN EXTRACT:-   

'Our €250,000 Spanish villa sold for just €87,000'
Falling property values and soaring costs are forcing expats home - where some face fresh difficulties
Property prices have continued to fall in popular and overdeveloped coastal regions of Spain, where the supply of holiday villas now outstrips demand Photo: Alamy

By Emma Simon

7:06AM BST 29 Apr 2014

Comments

Like thousands of other British expatriates, Bob Puddicombe and his wife, Phyllis, found that their retirement dreams of a place in the sun turned into a nightmare following the financial crash.

After 13 years living in the south of Spain, the couple returned home in 2012. Their three-bed villa in Almayate, near Malaga, was initially on the market for €250,000 (£206,000). It eventually sold for just €87,000 (£71,500). They have moved back to the Plymouth area, where they lived before moving to Spain.

Mr Puddicombe, who is nearing 70, said they decided to return to the UK as they were getting older and wanted the security of the NHS. But at the same time the adverse exchange rate has hammered the value of their pension in recent years.

"At least we were able to sell, and have used the proceeds to buy an ex-council house back in Britain," he said.

But many of the friends the Puddicombes left behind have not been so fortunate.

Yes, the one you want is House Prices 

However, totally at odds with the Reuters that shows prices actually rose in Spain in the last two quarters for the first time in many years.

Reports, eh?
 

Prices certainly are not falling where I am in Spain and a lot of people purchased in 2013  as this report shows  Purchase of properties by foreigners in Spain rose 36% in 2013

http://www.lavanguardia.com/economia/20140429/54406438335/adquisicion-viviendas-extranjeros-crecio-2013.html

Bobaol,  I am in Cabo Roig.

 Sox.    From 2012, the rise was 36.6%, the largest since this statistic was established. In 2013 there were 329.146 sales, of which 36,700 buyers were foreign.

But surely that refers only to the percentage of non Spanish who bought, and unless I have missed it, there is no mention of the sale price of property.   In fact the piece says that the fall in prices is the reason for the increased interest by non Spanish. 

 Your reference says, The actual number of sales fell from 916,103 in 2006 to 329,146 in 2013.  

 Thus the number of sales declined by around 66% from 2006 to 2013

I don't see anything like good news in that info.

I cannot see why anyone should really want to "talk the maket up" as you suggest Johnzx.  Surely they are just expressing an opinion.  We're all guessing, but there has to be a limit to the fall on the basis that new properties cannot be built for the cost of those that are being sold off by the banks et al.

So when those go, which they surely will, the price must go up as people still want to buy.  And the fact that house prices in the UK are on the rise is likely to assist this process.  These reports should be treated with caution as invariably they are written by journalists with their own motives.  But when the price of any item in demand falls below it's replacement cost, you know that supply will be limited and as soon as it runs out the price will increase.

Acer  Why would anyone want to   "talk the market up"

Because they are in the real estate business or have a couple of properties they are anxious to sell.   

I believe the market will come back, but not in the medium near future.   And not until the 50 billion euros worth of 'bad debt' properties currently held by SAREB are liquidated.

QUOTE

"Since a group of nine Spanish nationalised and semi-nationalised savings banks transferred
€50 billion worth of real estate assets to Sareb, the Spanish bad bank is now the largest private fund
manager in Europe. The assets are mainly residential properties and development loans which during a 15-
year lifespan will be liquidated. An improvement in the macroeconomic conditions is essential to obtain
the expected annual 13 percent return for Sareb’s shareholders. Eurostate reports in this article on
structure and the potential impact of Sareb on the Spanish real estate market."

johnzx, you always have to take a positive into a negative, do you argue everybodys comment? Read the article headline sales rose last year by 36%, your qoute is from 2006 to 2013 !! ( to me that is a 7 year period),  2006 was not last year, I stand by the article sales LAST YEAR (to me that is 2013) rose by 36%.

 Sox .   With respect you seem to have misunderstood the headline.  Quote   "LAST YEAR (to me that is 2013) rose by 36%".

It headline reads:  

                  La adquisición de viviendas por extranjeros creció el 36,6% en el 2013

                             (The acquisition of housing by foreigners grew by 36.6% in 2013)

That headline only refers to the percentage of foreigners buying, it does not say that the number of actual sales rose, in fact to the contrary, the following article shows that actual overall sales between 2006 and 2013 fell by around 66%.  It does not show, as far as I can see, what the actual sales were in 2012, but it does show that sales in 2013 were almost 600,000 less than in 2006.

I don't think that any informed person would suggest that Spain is a good place to buy just now, or for the foreseeable future.  My original post was to give some hope to pensioners in particular who already live in Spain.  Spain is in this situation for the long haul, as everyone has known for the past 6 years or more, and I agree with many when I say this will probably last for another decade or so.  Mainly due to the vast amounts of money that Government has to claw back due to debt, which is as I understand it making many parts of Spain unpleasant to live now.  As they say, sometimes things have to get really bad before they get better and I am of the opinion this applies to Spain.  That said, if someone wishing to move to Spain has savings and no mortgage,  no worries financially.  But I along with people I know who live in Spain are concerned about the fact that due to worry people are beginning to behave rather aggressively at not being able, (for whatever reason) to sell up and return to the UK.  I do think Spain is in for more unpleasantness I am sorry to say.  But , I say again for pensioners financially who want to remain in Spain it's looking rosier financially.  I know it's not a good idea to express negative opinions on this site, but what the hell shoot me down, it's the internet after all:)

Sooz, you say I don't think that any informed person would suggest that Spain is a good place to buy just now, or for the foreseeable future - that's rather a sweeping statement!  Do you really reckon that all the current purchasers have got it all wrong?

I'm not going to repeat what's been said before, but for those who want a holiday or retirement home they can certainly do a lot worse than Spain.  In my mind long term renting is not clever and there's no point in hanging around waiting to see if prices go down more, there's more to it than worrying about money, life is foir living!

I also think it is an excellent time to buy in Spain.   You will get a lot for your money - but you have to want to use the house.  I don't think there is a lot of profit in rentals so if you cannot afford it don't buy.   But if you can......the sky is pretty much the limit.  

I would not consider buying until the 50 billion euros worth of 'bad debt' properties currently held by SAREB are liquidated.

As that will almost certainly bring the market to it's knees

I don't disagree Johnzx, but you can currently buy a very nice apartment in Villaricos (one of the Times top places to buy), a stones throw from the beach, for 55000 euros, or a three bed for 80.   The three beds are well over 100 square feet - maybe 130, and I just don't see you can lose.   IF you like the place and want to use it.   Definitely not as in investment.   

I absolutely agree 100%,  life is for living.  When we reach pension age this is an even more desirable concept.  And combined with that conception,  more mature adults need a certain freedom that only comes about with a decent cash flow.  And in my opinion therein the problem.  Many pensioners in Spain are strapped for cash,  which I imagine disables them from living their lives as they would like to.  That's where my thinking is coming from.  Also, a good reason why I decided not to retire to Spain, that and the health service ie very little Spanish and associated problems within the health sector.  Too late to improve my Spanish, before someone bites my head off, as I sustained a certain amount of brain damage from radiation treatment ie very bad memory problems.  I wish everyone luck who has retired to Spain and let's hope with the £ continues to grow.

Some very good points made here on this thread and as much as we all want Spain to recover quickly there has to be a balance in order to do so and sadly there isn’t one at present. We all know, and it has been pointed out many times on this forum that house prices can only recover when that balance is struck.

The banks housing stock is hardly dented as more repossessions replace those units that have sold and with an estimated 3m homes empty it is going to take a long time before any stabilization can be achieved and the release of low cost mortgage delinquent properties onto the market, can only depress the general prices.

The ECB prevaricates while the Euro staggers from post to post, failing to introduce long overdue QE or as first expected, a rise in interest rates – either course of action will strengthen Sterling hence Sooz pretty accurate prediction that the Euro will weaken and when UK raise bank rates as they will be certain to do, the £ will gain even more.

We have heard many claims over the last 4 years ‘green shoots of recovery’ and foreign buyers ‘flocking’ to buy bargains – the truth is hard but it has to be faced.

Until Spain puts transparent legislation in place protecting property buyers the worlds press will continue to deter buyers – at any price.

Until Spain reduces the disgraceful unemployment figures by at least 60% the economy can’t grow.Until Spain re-finances the commercial banks – where do the mortgages come from to underpin the house buyer market?

Until the ECB makes better provision for Southern Europe and basically devalues the Euro – no recovery is possible.

Quote from Acer: In my mind long term renting is not clever and there's no point in hanging around waiting to see if prices go down more, there's more to it than worrying about money, life is for living!

If that poor couple Mr. & Mrs. Puddlecome, mentioned in this thread had rented, they would actually have saved around 97,000 euro based on a 10 year rental of 550e PCM