Comments on: Homes still 50pc over-priced in Spain says The Economist, but don’t you believe it

By: oidunno

oidunno — Tue, 20 Jul 2010 04:03:36 +0000

Good analysis Mark.. great comments all.
SPI is the only light in a lot of darkness.
And the Economist should know better. LoL.

By: chris mccarthy

chris mccarthy — Mon, 19 Jul 2010 18:22:39 +0000

Asking prices from Vendors are indeed fantasies, so are the government stats, so are the valuation Tinsa figures – I have just had privileged access to Estate Agent data on actual sales for the past 18 months and when these are compared to 2006 then the average actual / factual selling price for all sales, and these being well over the 200 mark, is down by 35% but the clearest and most significant data available that says this is fact, is the agents actual average commission paid across all sales – which is also bang on at 35% less than it was during the 2006 period.

Forget Tinsa, Forget Idealista, Forget Housing Ministry, Forget the Banks or the Economist, just for goodness sake ask the agents who are doing the actual selling!

Mind you, these figures are only related to the Costa del Sol and are against the more premium property market, there are still many other units that have fallen by 40%+ and more available but not selling that are 50% down.

This 35% fall is the top end of the market holding up!

By: Charles Mackenzie-Hill

Charles Mackenzie-Hill — Mon, 19 Jul 2010 17:48:41 +0000

Can once reverse calculate the house prices from a rental rate?

As an example we have this property for sale in Balcon de Benavista for 215,000 Euros. We thinks that’s to high. The vender now would like to let the apartment rather leave it standing empty for what we feel could be sometime. The only rent we have been offered , that we felt was by someone of good means and character, has been 600 Euros monthly. Not great I know. Now, can one do the reverse math’s and find the true value ? Going by the monthly rental. For your curiosity here Is the flyer for the property in question. http://cmhproperties.vflyer.com/home/flyer/home/3370770 It is a nice property . But I think you will find the percentage return, if you were an investor rater alarming, especially without, at this time, the capital growth. Long , long term ownership is probably the only way you will gain?

By: Mark

Mark — Wed, 14 Jul 2010 11:08:44 +0000

Asking prices are just vendor fantasies.

By: adiep

adiep — Mon, 12 Jul 2010 19:22:30 +0000

Im not so sure Mark. If you look at the average euro/m2 history on Idealista, which are I believe calculated by them with their data and not on TINSA, then you can see there hasnt been a huge drop in asking prices, perhaps 15%. If they are using the TINSA numbers, then they are bloomin daft and someone should tell them they have a far better mine of information. Real asking price data..

Here is the link im talking about

http://www.idealista.com/pagina/informacion

See the excel titled – historical report: price evolution venta 2000-2010 en excel (283kb)