Increase In Property Sales In Murcia Tails Off In Final Quarter of 2017
Although the final month (December) of 2017 sales figures have not yet been published, it appears there has been a tailing off of sales in the final quarter, indicated by the fact Murcia has slipped down the table from its top 10 position to 21st for the month of November, according to National Statistics Agency (INE). I anticipate the final month will perhaps show a surge of activity, as from our personal experience, we had another record breaking December for sales. I would expect this to be reflected by other agents as there was a huge amount of cash buyers on the ground actively looking to complete on a bargain.
Sales of New-Build Properties have increased substantially, (by almost 17%), despite the banks tightening their funding parameters with developers. The Bank of Spain has issued warnings that it is determined to avoid another property bubble in the New-Build Sector and consequently (from 1st Jan 2018) reduced the mortgage loan to value (LTV) on building land to only 50%, leaving many small developers in a cash-flow crisis and adding more fuel to the fire by also further restricting the LTV on buyers of those properties.
This has come about because many industry analysts have spotted a large chasm appearing between the sales values of New-Builds compared to the equivalent resale property value. This was one of the components that led to the property crash in 2008 regarding overvaluation of many newly built resorts throughout Spain. Eventually, negative equity and sub-prime mortgages caught heavily-financed home owners and banks out. Irresponsible lending and regulation brought the whole thing crashing down, so we can’t really criticise the Bank of Spain for their diligence in perceiving a new, potential threat to the economy and acting swiftly to avert another crisis.
Concerns About the Return of Rogue Agents!
Something that attracted my attention a few weeks ago was the eye-catching headline “The return of Cowboy Agents”!! Apparently there has been a sudden increase in newly registered Estate Agents – in fact 20,000 of them since 2015. It’s attributed to the fact that Spain is enjoying an upturn in the property sales market and attracting the wrong kind of people, out to make easy money! You can ask any established Estate Agent if they’re in agreeance that there is ‘easy money’ to be made in this business. I think I know what their answers will be! In my opinion, there has been a noticeable increase in new Spanish-owned estate agencies, perhaps due to the fact that Spanish home buyers are now using the services of Estate Agents as opposed to historically buying directly from the owners. With a huge increase in Northern European buyers from Belgium, Sweden, Germany and France etc., there is now a sufficient representation of those nationalities to justify them opening estate agencies to cater for their own countrymen and women in their preferred style and language.
Fuente Alamo Real Estate
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