The fact that we have been so busy throughout the summer months is encouraging.  For the business August was the best month we have seen for some time.   Buyers seem to be recognising that property is now great value for money and many to whom I have spoken seem to feel happier having their money in property than in the bank!  I cant say that I blame them.

Sales levels are considerably up on last year and we are seeing activity spreading into all sectors of the market.  We actually sold more Villas during August and September than during the whole of 2008!

I suspect that prices may now be bottoming out and there seem to be fewer distressed sales than there were previously.  The market is still obviously fragile and believe that prices will be on a plateau for the foreseeable future.  Overall though it is a healthy situation and buyers still have plenty of time to find their ideal property at a sensible price.

We are still having problems with the banks many of which are reluctant to lend and seem to be using delaying tactics. Hopefully their situation will ease over time but for the present the cash buyer is certainly king!

We are actively seeking new properties to sell and are in the process of launching new marketing initiatives to build our property portfolio further.  Any one interest in selling on the Costa del sol is welcome to call me at the Puerto Banus Office and I will be happy to discuss your individual case.  In the meantime you may like to have a look at our promotional video :  Michael Moon – Selling your property on the costa del Sol

Until next time

Michael

I have worked in the property market for over 30 years now and during that time have negotiated my way through at least 3 major recessions including the 3 day week back in the 1970’s and the crash of the London property market in 1989.   This time, everyone tells me,  it is different.  I am not so sure.

Whenever we have a recession the property market, like the stock market reacts.  Usually following from a boom when prices have been allowed to rise to an unfeasible level there is always a period of correction and re-evaluation whilst the market finds its new level.  The big difference, this time, is that the banks were caught with their trousers down and were actually shown to be culpable for the problem.  They were of course equally culpable in the late 80’s although at that time they managed to escape the blame!

During the course of the last 6 months we have seen a dramatic change in the Spanish property market.  Prices have certainly come down although from our point of view we haven’t seen the collapse that the newspapers would like to report.  In fact, in my company, sales during the first 6 months of 2009 are up on the first 6 months of 2008 albeit that the prices, on average, are around 30% lower than the peak prices in 2007.

The most interesting factor to me is the increase in new enquiries. Month on month we are seeing more new enquiries from all sources including internet enquiries and walk-in enquiries into our offices on the Costa del Sol.   The simple fact is that the interest in the market is most certainly still there and buyers are still looking to buy, although all are aware that they should be looking for a “good deal”.  Having said that the good deals are available and the sales are being made.

It will be interesting to see what happens in the next 6 months.  I rather think it will be more of the same.  Prices seem to be leveling off and there are signs that the market may be beginning to bottom out.  Mortgages are still difficult to obtain and the banks,  whilst officially saying that they are still lending, are not making it easy for buyers.  There are however mortgages available for good quality buyers and with low interest rates and low prices there really has never been a better time to buy.

If you need help with the sale or purchase of a property in the Costa del Sol, please do not hesitate to write to me on my private e-mail : michael@michael-moon.com