Costa del Sol Property Market – Half way through 2009
July 7, 2009 - Posted in Property
It must be a sign of getting older that we are in July already but it only seems like 2 months since the New Year. And what a 6 months it has been!
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
6 Responses to “Costa del Sol Property Market – Half way through 2009”
Michael
I actually think the level of enquiries increases in professional agencies, simply because there is less competition.
Look how many semi-professionals we have seen shutting shop in the last 6 months and on top some of the megalomanics like Viva and Adhs reduced their presence to something a bit more modest.
In the first wave of the “real-estate-agents-natural-selection -process” (i love the philosophies of Darwin, Nietsche and Lange) the weakest, or underfinanced, unprofessional or simply useless agents disappeared silently.
I think thats actually good news for the customer.
Wolfgang Brand
By Wolfgang Brand on Jul 8, 2009
Also bigger businesses have enough capital to see them through such difficult times. I have seen a few companies go into what is basically hibernation at the moment.
By Rebecca on Jul 15, 2009
You are absolutley right, although I think that in difficult times there are always opportunities but it needs hard work and focus. Hibernation basically puts you behind the game when the market does improve. Truth is its hard to find the right balance and it has to be a combination of both skill and luck!
By admin on Jul 15, 2009
Wenn nur alle immer so vernünftige Ansichten hätten.
By Amelie Inoil on Jul 31, 2009
Many thanks for your comment. I had to get my friend to translate it for me but your comments are appreciated!
By admin on Jul 31, 2009
” 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.” The mantra of all agents everywhere. I’ll be buying when today’s discount prices drop another 20% at that stage I may consider purchase as an investment. At today’s prices, I could only consider it as a place to live.
I have friends trying to sell and even slashing their prices there is little interest whilst a friend who has completed this week paid 300k for a property that was up at 495K only 18 months ago.
With 1 million plus empty properties in Spain I see no signs of the price crash stopping yet.
Spain WILL bounce back and I am sure it will be stronger than ever. The banks will have learnt their lessons from 100%+ mortgages and we can all get on with our lives again.
By Steve Hall on Aug 29, 2009