Property in Spain still to expensive

Asking prices are still between 10% and 20% too high, reveals a new survey of house-hunters carried out in March by the Foundation of Savings Banks (FUNCAS).

84% of Spaniards think that vendors are still asking too much, and more than half think prices will fall around 10.5% this year.

Compared to the last time this survey was carried out, however, the general perception of value for money has improved. In 2005, 95% of Spanish property hunters thought property prices were over-valued by between 30% and 50%.

“There is still a perception that prices are over-valued, although less so, probably as a result of official prices falling for 2 years,” explains real estate expert Prof. José García Montalvo in the report from FUNCAS.

Is now a good time to buy? Spanish house-hunters are divided. 55.5% say yes “fundamentally because of low interest rates,” whilst 44.5% say no. So the current and former Ministers for Housing are not the only ones who can’t agree if now is a good time to buy property in Spain.

The survey by FUNCAS also reveals that most house-hunters think it will take the market 7&1/2 years to recover fully, though a significant minority are optimistic a recovery will happen much sooner.

Orginal article: Spanish property insight

One Response to “Property in Spain still to expensive”

  1. Resale Centre says:

    I think that it all depends on the area and buyers at the moment, on the Costa Blanca south where we are located, prices have come down way below what anyone could of imagined or predicted. On the other hand, owners still believe their property is worth more than the current market value and will stick to their guns and hold out for a higher price or wait until the industry bounces back until they are willing to sell. If people think prices are still too high then they will bide their time and find the property with the right price bracket for them. But there is some seriously cheap properties out there on the market today.

Leave a Reply