Price falls, when, where??

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This topic contains 27 replies, has 15 voices, and was last updated by Profile photo of Anonymous Anonymous 8 years, 6 months ago.

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  • #53960
    Profile photo of Anonymous
    Anonymous
    Participant

    There is a lot of doom and gloom about the state of the market. But, I’m not really seeing this reflected in the real world (at least not where I live, Gran Alacant, near Alicante).

    So, it seems to me that there are a lot of negative pressures on prices now:

      – The credit crunch
      – Rising interest rates
      – Growth is down, unemployment rising
      – A weak pound
      – Massive oversupply in the market
      – Lack of consumer confidence

    Yet asking prices here have fallen around 3% in the last 12 months. I have read on local forums that prices have fallen here 20%, but I am not seeing this. So why this discrepancy?

    Maybe the worst is yet to happen (as I suspect). Or maybe I live in an area that is not so badly hit, we are close to the City & Airport so I guess that helps a little, but I really doubt that is the reason.

    Anyway, I´d appreciate your views on this.

  • #82700
    Profile photo of katy
    katy
    Spectator

    No significant drops around here. Although according to agents its just that you don’t know about them 🙄

    I don’t think there is much of a market at any price over 50% reduction just now as the prices have been so vastly over-inflated for the last few years and been developer led.

  • #82701
    Profile photo of Inez
    Inez
    Participant

    From what I see you will only see a few price drops. If you see something you like go and offer low – sometimes the agent woint put it to the owner though!

    Ive got friends out and over discussions I said another year probably!!! Pips will start squeking them

    Its beeen a slow roll to the edge and onlly the sensible ones or the ones who have to sell now are jumping.

  • #82703
    Profile photo of Anonymous
    Anonymous
    Participant

    I always inform the vendor of any offer I receive, no matter how low or ridiculous, negotiations have to start from somewhere. The problem is most vendors are already down to their lowest price and won´t accept offers. I charge 2% for a resale commission and have, in some cases where the offer is low, informed the vendor that I shall reduce my fee to 1%, but still the vendors won´t budge.

    I work on the rule that 1% of something is better than 2% of nothing, however, most vendors seem to be planning to go back to the UK and need to buy in a more expensive market, so, I can´t blame them for holding out.

    It´s not my job to frighten vendors into selling, but I try to suggest that next year the offers could be even lower!

  • #82708
    Profile photo of Anonymous
    Anonymous
    Participant

    That’s interesting Peter. Why do people want to come back to the UK? 😯 I hope the reasons are good, then maybe I might feel a little better about living here. Very hard at the moment! I’m grateful that we do not have monsoons or earthquakes though…yet.

  • #82712
    Profile photo of katy
    katy
    Spectator

    Right Move announced today that prices have actually risen in the UK.

  • #82713
    Profile photo of Anonymous
    Anonymous
    Participant

    @Claire wrote:

    That’s interesting Peter. Why do people want to come back to the UK? 😯 I hope the reasons are good, then maybe I might feel a little better about living here. Very hard at the moment! I’m grateful that we do not have monsoons or earthquakes though…yet.

    That´s a very interesting question Claire 😯

    Personally I wouldn´t contemplate going back to the UK. Generally speaking I suspect most Brits who made the move never actually settle to life in Spain. If they learned the language it would help, but sadly the majority don`t.

    So after a few years of setbacks and the lure of new grandchildren, health worries, decreasing pension incomes or depleted savings and failed businesses, the temptation to return to the UK is greater, as the novelty of Spain and it´s climate wears off. A case of the much hated “been there, done it, got the T shirt!.

    I remember during the busy times, we would know which clients would go back and which ones would stay by a simple Freudian phrase – Some would say “we are going back to the UK to visit family” and others would say “we are going back home to visit family” – needless to say you will be able to guess which ones eventually go back!

    Who knows what awaits them if they do go back, but at least they will have their family around them and will soon get caught up in the daily routine to forget about their experiences in Spain.

  • #82714
    Profile photo of Anonymous
    Anonymous
    Participant
    katy wrote:
    Right Move announced today that prices have actually risen in the UK.

    Asking prices. Halifax and Natwide report selling prices.

  • #82715
    Profile photo of Anonymous
    Anonymous
    Participant
    Claire wrote:
    That’s interesting Peter. Why do people want to come back to the UK? 😯 I hope the reasons are good, then maybe I might feel a little better about living here. Very hard at the moment! I’m grateful that we do not have monsoons or earthquakes though…yet.

    Claire, for educated people UK is much better salarywise than any other European country.
    Also science is much more appreciated in UK than anywhere in Europe, except Germany and Netherlands.

    You can enjoy holidays in Spain and Italy but the salares there are low-low-low.

    The attitude towards foreigners is also much better in UK than Italy, Spain and France.

  • #82719
    Profile photo of Anonymous
    Anonymous
    Participant

    @ralita wrote:

    The attitude towards foreigners is also much better in UK than Italy, Spain and France.

    I can see where you are coming from ralita. But in my own experience I have never suffered any feelings of discrimination etc.

    On Saturday night we went to a Spanish friends daughters confirmation, and then on to a restaurant paid for by the family. There were over 50 guests and it felt like the occasion was for us. Everone was incredibly friendly and made huge effort to introduce themselves throughout the evening. The converstions were terific and compared to a table full of roudy brits opposite, I know I was with the better company.

    I never once heard any of the adults chastise the many children there, nor did the children do anything to require chastising.

    On a few visits to the UK recently I have seen some terrible behavour in public places and it´s probably the No1 reason for me never considering living back there.

  • #82724
    Profile photo of katy
    katy
    Spectator

    Well, I have seen some very badly behaved spanish brats who should be chastised instead of left to run riot.

    Leaving Spain? all the reasons Peter says. Others disillusioned as to how the place has changed. I don’t think not speaking the language has any bearing, it does enhance your life here but you don’t need to speak it. More than one of my friends has returned during the last two years after having spent more than ten years here. None of them for financial reasons.

    Someone who my Husband knows has just been telling him that he decided to reduce the price of his apartment for sale. He bought it for just 38,000GBP in the 90’s, official valuation now 225,000 euro. Been on the market for ages and he visits less and less. He thought ‘what the hell’ I will just take a low offer. He advertised at 185,000 and said he would consider ALL offers. Response…5 calls, 3 from Agents and 2 from other property ad places asking him to place an advert!

  • #82725
    Profile photo of Anonymous
    Anonymous
    Participant
    Peter Good wrote:
    I can see where you are coming from ralita. But in my own experience I have never suffered any feelings of discrimination etc.
    On a few visits to the UK recently I have seen some terrible behavour in public places and it´s probably the No1 reason for me never considering living back there.

    I guess it also depends where you live in Spain and where you visit in UK.

    I have seen lots of terrible behaviour in public places in Madrid, Barcelona, Valencia or
    Sevilla, same as in London, Manchester, New York, Bucharest, Berlin or Rome.

    Sciencewise and salarywise UK was and is my No1 place in Europe. Lifestylestyle-wise,
    I would move to Spain or Italy tommorow if not for the 30 years I still have till pension.
    Spain or Italy are countries one can fall in love with, UK is a country where work is better rewarded.

  • #82810
    Profile photo of Anonymous
    Anonymous
    Participant

    what a nice , understanding man! it is surprising to find one on here, you have encapsulated our situation ( and many others) it doesn’t make us inferior beings,degenerates,criminals,perverts(well I might admit to that one!) but the way some people talk on here you would think you had committed a crime rather than made a mistake ( that YOU are going to have to pay for anyway!)

    @peter Good wrote:

    @Claire wrote:
    That’s interesting Peter. Why do people want to come back to the UK? 😯 I hope the reasons are good, then maybe I might feel a little better about living here. Very hard at the moment! I’m grateful that we do not have monsoons or earthquakes though…yet.

    That´s a very interesting question Claire 😯

    Personally I wouldn´t contemplate going back to the UK. Generally speaking I suspect most Brits who made the move never actually settle to life in Spain. If they learned the language it would help, but sadly the majority don`t.

    So after a few years of setbacks and the lure of new grandchildren, health worries, decreasing pension incomes or depleted savings and failed businesses, the temptation to return to the UK is greater, as the novelty of Spain and it´s climate wears off. A case of the much hated “been there, done it, got the T shirt!.

    I remember during the busy times, we would know which clients would go back and which ones would stay by a simple Freudian phrase – Some would say “we are going back to the UK to visit family” and others would say “we are going back home to visit family” – needless to say you will be able to guess which ones eventually go back!

    Who knows what awaits them if they do go back, but at least they will have their family around them and will soon get caught up in the daily routine to forget about their experiences in Spain.

  • #82811
    Profile photo of Anonymous
    Anonymous
    Participant

    @katy wrote:

    Right Move announced today that prices have actually risen in the UK.

    Rightmove only track asking prices on their own website. Having experienced the ability of the average (i.e. useless) UK REA, and the even dumber gullibility (myself included) to believe UK REA valuations, I take any Rightmove pricing index with a pinch of salt. The only index I go off now is the Land Registry which tracks actual selling prices. The only problem is that it is usually 3 months out of date.

    Kevin

  • #82813
    Profile photo of Anonymous
    Anonymous
    Participant

    Kp4wp
    Are you really saying that U.k E.As that are linked to rightmove dont know how to value 😥
    Shame on you as I started with the biggest firm in a town that I had no knowledge of and they gave me all the training I needed to carry out valuations.
    Training started 9.am an a Monday and I will have you know lasted 2 whole hours and they gave me a road map.
    Sat Nav followed after me first 10 listings 😆
    The secrets are simple
    1 Dress like a ponce.
    2 Keep smiling like a chesher cat and dont forget to tell them how lovely the house is even though it a smelly tip( lovely wall paper always works)
    3 Carry a clip board then you look impotant 😕
    4 Act like a complete ass-ole,and always look at the ceilings (they all do 😆 ) I was good at that 😆
    5 No matter what the price always say £ 950.00 at the end of the figure and thats when the clients know what you talking about.£85,950.00
    Girls always go for £995 at the end while flashing their t- ts when the wifes not looking ( remember your the man in the house and you make all of the decisions) 😯
    6 The man estate agent will already have done a job on yer wife and she is eating out of his hand.
    5 Say things like > We have clients linning up to buy properties like this that we pass sole listings to only.
    6 We can sell this no problem
    9 Why not arrange your next mortgage so once we have sold yer house so that you will be ahead to make an offer when you see what you want) hellooo theres a fee to pay first) 😯
    10 Staff meeting on the morning of valuations QUOTE
    All 3 bedroom houses in road X its worth W and if its 4 bed its worth Z.
    Reality is the one that normally knows the value is the owners,excluding the jokers of course.

    Just Frank 8)

  • #82814
    Profile photo of Anonymous
    Anonymous
    Participant

    That made me smile. Our agents in the UK were just like that, and were amazingly bad. So bad in fact that I often questioned my sanity… Was it just that I was misunderstanding how bad these guys were, and like a complete fool we stayed with them for ages. Oh well, you live and learn 🙂

    Of course RightMove prices are no indication of the true state of the UK market. But here it is worse, only this evening we were browsing an agents listings. We found many examples of the same house, on the same urb, through the same agent. Prices ranged from 192K to 390K. Now, I know that some are worth more than others, but this range is truly crazy. Still, it made us laugh.

  • #82815
    Profile photo of rt21
    rt21
    Participant

    Although I feel that estate agencies generally have a poor reputation in Spain among the expat community isn’t it a little ironic spanishopers that two of the most reasonable contributors on this forum seem to be Inez and Peter Good.

    It’s a pity that more members of this forum don’t take a leaf from their book and treat other people with the respect they deserve

    Richard

  • #82817
    Profile photo of Anonymous
    Anonymous
    Participant

    Well, I guess we can write this thread off too. I started this to discuss the gap between the state of the market and the “reality” seen with local agents and sellers…

    I (naturally) agree with statements like this:

    “It’s a pity that more members of this forum don’t take a leaf from their book and treat other people with the respect they deserve”

    But I was rather hoping that we could nudge this thread back on topic.

  • #82818
    Profile photo of Anonymous
    Anonymous
    Participant

    @Just Frank wrote:

    Kp4wp
    Are you really saying that U.k E.As that are linked to rightmove dont know how to value 😥
    Shame on you as I started with the biggest firm in a town that I had no knowledge of and they gave me all the training I needed to carry out valuations.
    Training started 9.am an a Monday and I will have you know lasted 2 whole hours and they gave me a road map.
    Sat Nav followed after me first 10 listings 😆
    The secrects are simple
    1 Dress like a ponce
    2 Keep smiling like a chesher cat and dont forget to tell them how lovely the house is even though it a smelly tip( lovely wall paper always works)
    3 Carry a clip board then you look impotant 😕
    4 Act like a complete ass-ole,and always look at the ceilings (they all do 😆 )
    5 No matter what the price always say £ 950.00 at the end of the figure and thats when the clients know what you talking about.£85,950.00
    Girls always go for £995 at the end while flashing their t- ts when thewifes not looking ( remember your the man in the house and you make all of the decisions) 😯
    6 The man estate agent will already have done a job on yer wife and she is eating out of his hand.
    5 Say things like > We have clients linning up to buy properties like this that we pass sole listings to only.
    6 We can sell this no problem
    9 Why not arrange your next mortgage so once we have sold yer house so that you will be ahead to make an offer when you see what you want) hellooo theres a fee to pay first) 😯
    10 Staff meeting on the morning of valuations QUOTE
    All 3 bedroom houses in road Xits worth W and if its 4 bed its worth Z
    Reality is the one that normally knows the value is the ownerst,excluding the jokers of course.

    Just Frank 8)

    LOL – quality

  • #82827
    Profile photo of Anonymous
    Anonymous
    Participant

    @El anciano wrote:

    asking prices here have fallen around 3% in the last 12 months. I have read on local forums that prices have fallen here 20%, but I am not seeing this. So why this discrepancy?

    I think that the answer was laid out in the last figures issed by the Notario’s here in Malaga Province which showed the average declared value of sales was about equal compared with 12 months ago. I think it was actually up by a whole 0.5%!

    The difference is “asking price” compared with “selling price”. Here in Malaga, “asking prices” have fallen by probably 10-15% BUT they had been so inflated by the agents (many of whom are now falling by the wayside) and by their commissions of up to 10%. What I see (both by watching the market and by lsitening to those who have been lucky enough to sell) locally is that the “asking prices” have indeed fallen 15% this year but the actual selling prices are not too far different.

    A lot of the REA’s that went for 10% are now taking 3-5% and that gives an instant reduction of 7% that is NOT reflecting in the final declared value.

    At the moment, with the exception of distress sales, those with properties for sale will not reduce that far and the sales are still going through but in reduced numbers because there are fewer buyers around because of WORLD recession / economics / credit crunch.

  • #82828
    Profile photo of Anonymous
    Anonymous
    Participant

    Well, that certainly makes sense. And fits well with what I am seeing here, there don’t appear to be a lot of distressed sales, nor repossessions to drive down prices.

    And it rather seems like there are less properties for sale now than 12 months ago (still quite a lot though). I know that some sellers are just taking the house off the market, those will wait for better times to return.

    Of course that may change in the future, time will tell.

  • #82847
    Profile photo of Anonymous
    Anonymous
    Participant

    People who bought for their current or future use are not in distress, generally speaking. The distress sales will be more by flippers, Developers etc.

    If, I need to buy in today’s market apart from the price, I would buy in a well established completed block. This will comfort me by the fact that the paper work etc should be in order, I get what I see i.e. views, no missing swimming pool’s etc, and besides the above I know that I don’t have to live with the risk of the developer may not be able to complete the development due to credit/cash flow problems.

  • #82856
    Profile photo of Anonymous
    Anonymous
    Participant

    shakeel

    oh yes. I would think off-plan would need to be almost given away before many would take that risk now? Very hard to see any reason now, in the current climate, why one would even consider it?

  • #82857
    Profile photo of Anonymous
    Anonymous
    Participant

    @Just Frank wrote:

    3. Carry a clip board then you look impotant 😕

    Are you sure you mean that Frank? 😯

  • #82862
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Charlie
    Yep Went to the doctors and told me I had a new job as a fully qualified E.A ( you could see in his eyes that he was impressed) 😯

    After my examination he told me I was impotent.
    Well didnt think that estate agents were quite that professional but I though what the hell and bought me a new suit. 🙂
    Gotta look smart if yous impotant 😉
    Just Frank 8)
    Are we off topic here 😕 SORRY 😳

  • #82865
    Profile photo of Anonymous
    Anonymous
    Participant

    Many professions are fraught with side effect. Did not know EA was one of them.

  • #82866
    Profile photo of Anonymous
    Anonymous
    Participant

    @El anciano wrote:

    There is a lot of doom and gloom about the state of the market. But, I’m not really seeing this reflected in the real world (at least not where I live, Gran Alacant, near Alicante).

    So, it seems to me that there are a lot of negative pressures on prices now:

      – The credit crunch
      – Rising interest rates
      – Growth is down, unemployment rising
      – A weak pound
      – Massive oversupply in the market
      – Lack of consumer confidence

    Yet asking prices here have fallen around 3% in the last 12 months. I have read on local forums that prices have fallen here 20%, but I am not seeing this. So why this discrepancy?

    Maybe the worst is yet to happen (as I suspect). Or maybe I live in an area that is not so badly hit, we are close to the City & Airport so I guess that helps a little, but I really doubt that is the reason.

    Anyway, I´d appreciate your views on this.

    I let it be known that I was in the market for property in Alicante and by Alicante I mean the town of and not the nearby Urbs. I should have emphasised this more strongly, as this week, I have been contacted about numerous offers on premises in G Alicant and S Pola, with reductions up to 35% and properties from apartments to 6 bed villas.

    Hope that this information helps.

  • #82868
    Profile photo of Anonymous
    Anonymous
    Participant

    Hey MG, feel free to forward the details on to me 😆

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