Grim Reaper Playing Role in Spain Housing Supply

Tarifa town houses and property for sale
A new report spotlights a uniquely Spanish twist impacting the oversupply of homes for sale in Spain – inherited homes.

Every year an average of 120,000 homes that were inherited hit the market, according to data from RR de Acuña y Asociados. In 2013 the total of inherited homes new to the market was even higher, 138,428, according to the property consultancy.

For a market struggling to reduce the glut of homes for sale on the market, the data suggests inherited homes are playing a key role, adding more homes to the market than foreclosures or new developments, the firm says. There are an estimated 1.7 million homes for sale in Spain, according to Acuna’s data. The market will continue to struggle to recover until that supply is whittled down.

The inherited homes represent a unique market segment, testimony to Spain’s strong tradition of homeowners and tight families. Since the heirs may not be interested in keeping the property, sale prices for inherited homes tend to be lower than the overall market, firm director Fernando Rodríguez de Acuña Martínez told El Confidencial.

In many cases, the new owners are eager to sell as quickly as possible, creating another drag on Spain’s falling prices.

“They are bargains in comparison to other units on sale,” he said. “Selling your own house you seek the highest price. When it is not yours you, simply don´t mind this much and if you need money, you are eager to cut it even more.”

Unlike foreclosures and new homes, the flow of inherited homes into the market remains relatively steady year over year, the consultancy says.

“The problem won´t be bothering Madrid or Barcelona where the markets wake up,” Rodriguez told the paper. “But in some areas, the stock might never diminish because there is neither market nor demand for them.”

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2 thoughts on “Grim Reaper Playing Role in Spain Housing Supply”

  1. Steve A

    It would be interesting to see some demographic analysis and forecasting. Certainly tens, perhaps hundreds, of thousands of retirees moved to the costas in the late 1990s and early noughties when property there was absurdly cheap, plus a high pound and low Euro (£1:E1.70). As a group they are now moving inexorably into the ‘death zone’. If they are not replaced by new willing retirees then many thousands of properties will be left unsold, or end up being sold at rock bottom prices.

  2. Juan Miguel

    The grim reaper has come as a friend to many long suffering foreign residents who have had to suffer having been sold illegal homes, non existent habitation certificates, waiting indefinitely for legal electricity supply, suffering any imposed tax or fine for infringing spurious laws and being forced to declare all their financial interests and then to be taxed when in their homeland they were exempt. They have also been made to pay large sums for the privilege of having an urbanisation built on their doorstep etc etc, I could go on!
    Yes in the words or Long John Silver it appears the “Thems that dies will be the lucky ones!!”
    Those that haven’t shuffled off their earthly coil will immediately join the adios crowd and dump their property as soon as the market begins to move, thus adding hundreds of thousands more properties to the struggling market.
    Ay, ay, ay.
    Compared to the government the national football teams are brilliant.
    Juan Oh my long suffering country!!

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