Wednesday, 16 March 2011

Properties sales in Spain increase in 2010

Recent figures from the property register confirm the Spanish housing market expanded last year for the first time in 4 years. It’s the first bit of good news from the Spanish property market for several years, with 445,885 house sales last year, an increase of 5.38pc on 2009, according to the latest figures from Spain’s property register.

However, although this is positive news, temporary factors such as the elimination of mortgage tax relief at the start of this year, and the increase in VAT on new home sales mid-way through last year may have been the cause. This may be endorsed by the Idealista report in February 2011, who surveyed 400 estate agents all over Spain for their views on the property market today. These were the main findings:

  • Discount to asking price accepted by vendors: 30% of vendors accepted up to 10% lower, 43% accepted between 10 and 20% lower, 19% between 20 and 30% less, and 7% more than 30% less.
  • Change in stock of properties for sale since the end of 2010: 58% of agents reported an increase.
  • Vendor openness to offers: 88% more open than a year ago.
  • Main reasons why sales fall through: Vendors asking too much in 26% of cases, buyers offering too little in 40% of cases (remember, this is all in the opinion of estate agents), and banks not giving finance in 34% of cases.
  • Enquiries so far this year: Falls up to 20% or more say 51%, whilst 24% say an increase of up to 10%.
  • Sales so far this year: Falls of up to 20% or more say 71%, whilst 19% say an increase of up to 10%.
  • Expectations for the first quarter of the year (compared to same period last year): 47% say worse, 27% say the same, 26% say better.
  • Expectations for this year: 33% say worse, 28% say the same, and 38% say better.

However you wish to digest facts, figures and statistics, the bottom line is that it’s still a buyers market in Spain and a great time to buy a property for anyone with a long term vision or for their own use. As always the key when buying is location and with an abundance of quality property for sale in Spain, this could make now the perfect time to invest.

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