Flatlining Sales and A Small Increase In Property Values!
It’s around this time of year that we have sufficient data released to assess the current state of the Spanish Property Market; regarding sales performance and value trends.
This time last year sales volumes and property values were still on an upward trajectory and had been for the previous 6 years. However, as things currently stand, there has been a levelling off since the beginning of the year. I had touched on this possibility in a previous article, but now the first quarter stats are fully in, we can confirm this to be the case.
Throughout last year, our region saw an average increase in values of residential homes of around 5%. So far in 2019, we have experienced less than half of this growth and the trend looks set to continue for the next quarter according to most market analysts. Actual sales volumes have also cooled a little, with most experts agreeing the main influence being the economic slow-down in the Eurozone area and a tightening of financial regulations by the banks across Europe, all of whom are bracing themselves for mortgage and commercial defaults if this current economic slow-down continues.
In the past 6 weeks, the level of enquiries and viewings has remained constant, with a mixed range of nationalities looking to buy a Spanish property. Buyers are also of a more mixed age range and still many younger buyers with families are looking to move to Spain to live and work. With the constant stream of buyers comes the inevitable shortage of suitable properties. We have a growing database of clients who have visited the area and viewed with us three or four times, but returned home unable to find their ideal place in the sun. We are particularly short of; detached country or village properties between 120,000€ and 150,000€ – our most popular price band at present. If you have a property to sell in the countryside, a village or a coastal/golf location, please feel free to contact us with a view to putting it on the market.
Finally, I do enjoy responding to your email questions and requests for advice in response to my monthly column. I always reply within the day if possible and hope you find my answers helpful and fairly balanced.
Fuente Alamo Real Estate/Murcia Coast & Country
Tel 0034 625 534 504