Estate Agents Not Buying Property Recovery Story

For sale_BarcelonaMembers of the association of real estate agents in Spain, Los Agentes de la Propiedad Inmobiliaria (API), say they are seeing no signs of recovery in Spain’s property market, despite recent upbeat reports.

“On the ground” estate agents are not reporting more sales nor any improvement in prices, according to a press release from the association. While there are signs of more confidence and queries on property, agents say the increased interest has not translated into sales, El Mundo reports.

The feedback from the agent’s association sounds particularly pessimistic, considering the recent round of reports suggesting that price declines are slowing and sales are picking up. But it’s important to remember that many of the API members work in areas that don’t attract foreign buyers, which are driving sales in many markets. Agents focused on coastal areas may tell a different story than the overall report.

Despite the pessimism, the agents surveyed still expect 2014 to turn out to be the year that “prices stabilise and the bottom is reached”. But the association focuses on two factors continuing to dampen any signs of recovery — the lack of available credit and unemployment. While lenders are showing more “openness,” there are still no signs “the credit market opening in the short term,” API said in the release.

Unemployment continues to hover over 25 per cent, under-cutting any chance of recovery in the domestic market.

“Whilst there are no tangible improvements in these two aspects of the economy [credit and unemployment], the sector will continue suffering the illusion that the market is really improving,” API says.

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