One expert says the Spanish housing market is going through the worst period since the crisis began. It could be the darkest hour, just before the dawn.
The first quarter of this year was the worst “by far” for the Spanish housing market since the crisis began, argues Spanish real estate expert Eduardo Molet, quoted in the Spanish press. He also claims that the resale property market is “almost at a standstill.”
The end of tax breaks for buyers, the lack of mortgage financing, increasing unemployment, the introduction of Spain’s so-called “bad bank” (Sareb), the large-scale liquidation of homes with discounts of 50pc or more, and the collapse in house prices and confidence are all partly to blame, he argues.
It’s important to bear in mind that Molet is mainly talking about the domestic market for primary housing, which relies on local buyers. His comments are not as relevant to foreign demand for holiday homes on the coast, which appears to be starting to recover in some the best established areas like Marbella.
Personally, I think the foreign market is already past the worst, assuming it withstands the latest nonsensical moves by the Spanish Government to discourage foreign buyers (admittedly a big “if”). The domestic market will follow in due course, though I do not expect it to bounce back like it has in Florida and Dubai.