Anyone else feel that the Spanish Market is Improving?

[4sbo-spain]

Our Statistics: Enquiry levels up 4 fold in last 2 months, Clients booking last minute flights to view sensibly priced property, Sales increasing.
Is it me or is the market starting to turn and improve slightly?

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Regds Neil

[Damian George]

Hi Neil

Sorry i dont the Spanish Property Market is for the bargin hunters at the moment and desperate sellers - manly the only ones moving are many retirees need to sell due the changes in exchange rates as their pensions are not going as far as they once did and need to return home. interesting though we are seeing a lot of british sellers selling to spanish buyers.

Also out of interest you recommend global currency exchange what do they pay out of commission and would you be interested in trying us

Spain reported that GDP contracted in Q1 by 1.8% (after –1% in Q4), or 2.9% y/y. It’s the
biggest drop in 40 years. At the same time, unemployment rose to 17.4$ in Q1, also the worst since 1970.
Bloomberg says the EC expects Spain to continue contracting even if other eurozone economies start to recover. For the year, the contraction could be 5% and unemployment could reach 20.5% next year. “Bad loans have more than tripled, according to the central bank, and the collapse of the debt-fueled building boom and the squeeze on credit pushed 475 construction and real estate companies into bankruptcy proceedings in the first quarter.”
Spain continues to get declining prices (in contrast to the overall eurozone, where they are positive). The Spanish stimulus is 2.3% of GDP this year, more than any other country in Europe. Bloomberg says “The budget deficit will grow to 9.8% of output next year, more than three times the EU limit, according to the commission… As Spain’s deficit swells, the extra interest that investors demand to hold its bonds instead of German equivalents rose to the mostsince the euro was created… 65 basis points today, is more than double what it was a year ago.”

[rsredline]

Im currently in the market for an apartment in Lanzarote. Prices have fallen quite a bit since last year but Im still not sure if I should wait a while or not.
I read the article here about Lanzarote, good read.

From what you are saying should I stay put?

Any Lanzarote property owners on here that could give some advice?

Thanks

[greg]

Originally Posted by 4sbo-spain

Our Statistics: Enquiry levels up 4 fold in last 2 months, Clients booking last minute flights to view sensibly priced property, Sales increasing.
Is it me or is the market starting to turn and improve slightly?

Sorry it must be you... There is definitely no upturn...

[Damian George]

i have to agree - only sales going through are distressed sales - the same in the states

[rowlandsbb]

The Spanish property market is very similar to our own just now.....lots of over supply for certain types of properties such as apartments , low level of transactions and for some , those properties which are at a bargain price are often not the ones you want to buy!

Owners who do not have to sell are sitting tight so a lot of really good properties are just not for sale at the current price levels- developers who do not have to sell are just cutting back until times improve

There are some good deals from developers with circa 25% reductions in asking [!] prices compared with original and if you are wanting a nice holiday home with facilities now may perhaps be the time to start looking...Polaris World have some good offers and re sales asking prices from circa 87.500€

The best deals are probaly the distressed sales....a recent example was a 2 bed duplex in Palomares bought for 185.000 € several years ago, the price to sell was 130.000€ to clear mortgage..others similar...but you have to look hard to find the good ones

The prices stated for owner direct sales tend to be set too high and not reflect the market...most agents today will only take on a property if the price is realistic but some owners are still living in the past!

When will it improve?

I think the Uk market looks like improving late 2009 but we have a general election to get out of the way before confidence improves so that means mid to late 2010 before we see a return to a more active market...even though it has not been as cheap to buy for a long time and interest rates should be low for some time

UK buyers are an important part of the second home market in Spain so that means UK buyers will be slack until late 2010 but an exchange rate improvement may quicken this ,as there is certainly a pent up demand for buying in Spain ,just waiting for this to happen....talk of 1.25 by this summer just now

Spain will continue to be very attractive for northern europeans for well known reasons but with it's large over supply I suspect prices will remain level for a couple of years....say Q1 2011 to get back to a more normal market ,and those developments which are currently being mothballed re started

I think the above is a pretty standard view of the situation...if you want to and can afford to buy now then you should be OK medium term.......may not be buying at the bottom but at least close......and if in the right location via the right people then it should turn out a good investment......although to life style buyers investment returns are not always as important as the enjoyment they will get out of their purchase !

Planning and legal sitaution is now well regulated but as always you need good independant advice.....adopt the same attitude as you would buying in UK

So if you want to buy...no reason not go to Spain and have a look!

[Goldberg Global]

I think is improving, there seems to be winners and losers.

The good ones are winning and the ones that need to improve are losing. It is natural selection.

[Damian George]

the general improvement of the euro exchange rate seams to be helping brits - have seen a increased willingness to complete transactions recently

pounds to euros currently 1.1700

[Ibermaxx]

I'm seeing properties here in some places on Costa Blanca still overpriced. For example Punta Prima complex near Torrevieja-the prices there are still high. You have to be very lucky to find some bergain there.

[rowlandsbb]

The market is static overall with low volume of transactions and from a UK buyer perspective the uncertainty of our economic and political situation needs to be resolved

And that means a general election because until we know who will rule us for the next 5 years, people will put off decisions
Even Life Style buyers

So whilst there are lost of really good buys just now,UK buyers are holding back

An improvement in the exchange rate later this year may prompt buyers to get serious again

So it does look as though UK buyers will not start to be interested in any numbers until mid 2010
Forget about any boom or even a mini one until say post 2016 but 2011 should be the start of a balanced market and gradual improvement

Bur again keen life style buyers are still around looking for the dream home at a good price