House prices in Spain

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House prices in Spain appear to have a bouncing ball attached to them! Depending on which reports you read, they are either hitting the ground or bouncing back up! Of course commonsense would suggest that somewhere in the middle is probably a truer picture.

A report by Spanish Notaries shows that house sales suggest evidence of renewed interest and evidence of recovery as there has been a sales increase year on year in January 2014 of 59.2% and then 39.8% in February 2014. Sales of new-builds increased by 24.1% and sales of resale housing increased by 41.4%

As for prices, January 2014 showed a 8.9% increase on January 2013 and 0.6% in February of this year. The notaries say that statistics show that the Spanish Property sector is stabilising.

Type of housing stock, location and availability all have an influence on the cost of [B][U]a[/U][/B] house in [B][U]an[/U][/B] area. Most buyers still only purchase [B][U]one[/U][/B] property so what you pay depends on your own finances and the deal your advisor and/or estate agent can obtain on any given property. Expecting to get a luxury villa for the price of a basic apartment isn’t realistic though there are many bargains to be had. Properties which originally sold, for example, at 280,000 euros can often be purchased for less than half that price. So your neighbours may have have paid the original asking price!! This gives you an advantage over them if you want to sell in the future as you won’t need to have such a high resale price.

In certain locations, due to building restrictions or the fact there are no more of certain types of properties, when you are offered “last chance to buy unless a resale comes up” this may well be true. Your advisor should be able to tell you whether this is the case or not. If it is the case, resales in the future are likely to be at a higher price because of limited availability.

Remember that any property is only a bargain to you if it is what you want from a property. Just because it is a bargain is not a reason to buy!

If you are thinking of buying as an investment then now could be the right time. But this shouldn’t be thought of as a short-term deal e.g. buy today sell next year. It needs to be thought of as a deal for the next five years. Unless you get an offer you can’t refuse!