Who said the property market wasn't moving?

I was having lunch the other day with a group of lawyers and naturally everyone is discussing how the make an extra buck or two and topics such as the new mediation law came up and then the subject diverted to property. What a surprise! Is it a good time to buy? Is it a good time to sell? Is buying from a bank a repossessed house the cheapest way to buy a property? All the usual questions and although some properties held by the banks are falling as much as 65%, apparently there is an even cheaper way to buy a property. It is a market not run by the banks nor by estate agents , it is run by lawyers and their liquidation offices.  These properties never reach estate agents aren't ever advertised or auctioned, they are assets that are liquidated through "concursos de acreedores" , companies that have put their assets into the hands of their creditors and an administrator, who is responsible for selling the assets in order to generate "cash" to pay off the creditors. There is a huge portfolio of properties and vehicles moving as we speak in these closed circles at prices that would take your breath away. As their is no minimum price here you can imagine whats going on, basically it is sold to the best offer, but the properties are never put on the market to find a better offer, so it all stays in house and amongst "friends". 

Millionaries are being created over night as these properties are changing hands for ridiculous prices. Car parking spaces for 1000 euros, a family member of one of the guys present had just signed over 5 parking spaces for €6000 in the centre of the City, so you can imagine what flats and cars were going for. I'm not quite sure how this is allowed to happen and from what I understood not even the owners of the properties can control the price they are sold at, as it is under the control of an independent administrator assigned by the court. I had heard of this some time ago and knew that properties and vehicles were being sold off in this manner but had no idea the prices were this ridiculous, but as the volume is so large they want to move the portfolios as quickly as possible. So there is an area that is booming in the property market and it is mainly in lawyers offices, who are now becoming estate agents themselves behind closed doors.

 Heard this story months ago, maybe 5% true and 95% myth

99% true and 1% myth

Its been like this for many years.

There will always be someone out there able to make a fortune out of someone else's misery.

The good news for Communities however is that the new owners will have to pay up to 2 years of community fees if still owed.

They also still have to find eventual buyers to take on these vastly reduced assets, in order for a profit to be realised, so eventually market forces, or the law of supply and demand will prevail on prices.

The problem of lack of  final buyers for the million or so empty properties will persist for some time and currently more completed properties are being handed back to lawyers or bankers as owners are unable to maintain them.

It appears that the investors in Sareb, the Banco Malo are the very banks who got themselves into the mess of over supply in the first place not unlike in Ireland except there it is the same dodgy personnel running the show.