The Five stages of Spains property price recovery
The 5 Stages of Property Price Recovery in Spain, the Canary Islands, Mallorca and Menorca
So many people are trying to figure out exactly when Spanish property prices are going to reach the bottom, because that’s the moment when they want to buy. This article is our opinion and we could be proved right or wrong but as we are enjoying our best year since we started Girasol Homes and with Spain the number 1 market we are fairly confident things are on the upward trend with the properties we are seeing sell.
It is not an exact science as some properties will just be un saleable whether the market is good or not and everyone even remotely connected has an opinion. Regardless of which method you choose, at the end of the day it often just boils down to guesswork, instinct or experienced good timing. However, armed with an understanding of the 5 stages of house price recovery, you can remove most of the guesswork and make sure that when you come to buy, you are doing it at the best possible time.
Here is a simple graphic illustration of the 5 steps to property price recovery and remember we specialise in Property Bargains so we would expect to get you a brilliant buy whatever the market conditions and especially now.
1) The bargains are selling in some quantity, and although the bottom of the market has been reached, these last bargains force the statistical prices slightly lower as they are sold at prices even lower than market value.
2) The statistical bottom is reached. By now almost all the ‘bargains’ (properties being sold below market price) will have been sold.
3) Prices start to rise, however due to the lag in gathering and reporting statistics (and Spain is worse than most places at this), readers of the press will still be seeing reports showing that the market is still at position 1.
4) Prices in ‘real time’ are now solidly rising as tentative demand returns. Press reports now show that the market has reached stage 2, and this will also encourage buyers. The bargains have all but disappeared.
5) ‘Real time’ prices are now 6 months past the bottom. Buyers are now seeing stage 3 statistics and for the following months, price rises will accelerate. Although properties bought in this time will gain in value, clearly those who purchased at stage 1 and 2 will have had the greatest benefit.
Things to get right
Get yourself organised – if you need a mortgage get one before you view, we have a mortgage department who will get you a Decision in Principle within 48 hours
If you are planning to purchase a property do the groundwork with us before you go out and view, our property search form is the initial “eyes and ears” that our large network of “property finders” will use to search for your ideal home.
If you are going to transfer a large amount of Sterling speak to our personal foreign currency expert as soon as you can
Commit to working with a good and experienced property company who have the network of property professionals on the ground (yes that’s us) if you commit to us we will commit to you and work as a team. We have heard and seen so many horror stories that we want to work exclusively with every client on a professional one to one basis.
We are always trying to present our buyers in the best possible light so let us get your buyer profile right, you as a buyer armed with evidence of mortgage/cash, a good idea and budget for your property options and with the right information for our local people spells success. If we can get these items aligned correctly and work as a team, we are very confident you will get the very best property.
Posted by: Nigel Salmon on Friday 6th November 2009Tags
spanish property discounted girasol homes drastically reduced spain property prices property price index spanish property bargainsComments
Be the first to comment on this post!
Add a comment
My thoughts on the market coming back in the Spanish Property Market
No comments:
Post a Comment