Some indicators which show that prices may fall further to help the market
Thursday, February 17, 2011 @ 3:55 AM
The last week delivered a few interesting figures and indicators regarding property transactions and property prices in Spain that are certainly helpful if you put them all together. Prices may fall a bit further in 2011, which could reactivate the market.
1. REGARDING PROPERTY TRANSACTIONS IN 2010. The INE (National Institute of Statistics) said that, in 2010, property transactions were made up of 441,368 units. This is an increase of 6.8% compared to 2009. The news seems to be good (and it is indeed) but it is just a tiny improvement of total sales: 27,975 properties more.
2. ABOUT PRICES. The following figures make us think that if you need to sell in Spain now, you will need to reduce your asking price. On the other hand, the buyer will have room to negotiate.
- According to the Tinsa index, average national prices in January 2011 are down by 19.6% since the peak in January 2008. Also, prices have dropped by 5% in January 2011 compared to January 2010.
- The larger Spanish online property portal, idealista.com, published last week that, in January 2011, 26,679 advertised properties dropped their asking price. The average drop was €24,679. Madrid, Barcelona and Zaragoza are the cities in which more property prices were down.
3. MORE REPOSSESSIONS.
Read the full article in Property prices