The average price of resale property in Spain fell by 1.52% over the summer months, according to a price index published by the Spanish property portal Facilisimo.com.
The Facilisimo.com price index is based on a sample of 100,000 resale properties listed for sale in the company’s database. The company does not clarify whether its index is based on sale prices or asking prices, but it is safe to assume it is the latter.
Facilisim.com also reveals that the prices they track fell by 5.15% over 8 months to the end of August, and by 6.74% over 12 months to the end of July.
Average prices fell by 1.04% in May, 0.67% in June, and 0.38% in July, suggesting that prices falls were starting to slow. In August, however, prices fell by 0.43%, which may mean that prices have started to accelerate downwards again.
(Asking) prices fell the most over this summer in the Balearics (-7.52%), Murcia (-2.68%), and Castilla-La Mancha (-2.51%), followed by Aragon (-2.43%), Castilla y Leon (-2.24%), Madrid (-1.81%), Catalonia (-1.57%), the Valencian Region (-1.53%), Navarra (-1.45%), the Canaries (-0.98%), Andalucia (-0.87%), Asturias (-0.21%), and the Basque Country (-011%). Prices increased over the period in only 3 regions: Galicia (+0.98%), Extremadura (+0.93%), and Cantabria (+0.25%).
Busted says:
As a Spanish resident on the Costa Blanca for nearly 25 years I am the victim of the property trap and of the sterling collapse. In other words four mortgages in Spain to service with vanishing resources to service them due to a gentleman in England by the name Brown.
I cannot understand why asking prices are used in reports. A true price is what a willing buyer will pay and a willing seller will accept and NOTHING else.
Anecdotal evidence suggests that this figure lies around 60% of last year’s prices thus placing me in negative equity on ALL my property – hence “Busted”
Discussions with the few agents left suggest that a typical office with several agents sells one property a month if they are lucky at then at a vast discount to the asking price.
The reality seems to be that practically NOTHING is selling and only desperate sellers do sell but at firesale prices and after a very long wait.
There is a claim that English prices have fallen only 10% – can this be a disaster compared to our situation here?
The only mitigating circumstance from my perspective is rental income but even this is becoming harder as more and more failed sale owners turn to the rental market – a field day for renters!
I’d welcome return comment.
Yours Busted