Growing number of resale vendors dropping their asking prices

Vendors in Spain are becoming more serious about attracting buyers, if recent reductions in asking prices are anything to go buy.

A growing number of vendors trying to sell their homes are dropping their asking prices, according to new research by, one of Spain’s leading property portals.

Asking prices for 18,007 resale properties in the Idealista database were reduced in June, 30% more than same time last year, and the highest level for 2 years (see chart below).

The number of price reductions has been on the rise every month since January, causing the 12-month average trend to rise after falling for about a year.

But if the number of discounted properties is growing, the average discount value is not. Discount values peaked at the beginning of last year and have been declining ever since, so it’s a story of more, but smaller discounts.

Country-wide, 6.3% of resale properties listed at Idealista were discounted in June. The average price reduction was 8%, or 25,332 Euros.

Madrid and Barcelona lead the market down

The markets where the biggest proportion of vendors decided to drop prices were Madrid (9.3%) and Barcelona (7.4%). That means vendors in Spain’s two biggest markets are becoming more focused on finding a buyer.

In Murcia, on the other hand, only 4.3% of vendors reduced their prices, despite a heft glut of homes. Vendors in Murcia are going to have to follow the lead of Madrid and Barcelona and get more serious if they want to sell.

The table below shows the percentage of vendors in each region who reduced prices (in the first column), and the average discount (in the second column), all figures and charts from Idealista.

Asking price reductions growing in volume but not value

As I have already said, price reductions are growing in volume, but not value. Recently Idealista published other figures dealing with values. Here is a summary of those figures:

– Asking prices were down just 0.5% in Q1 over Q2, to 2,374 €/m2.
– Prices rose in 5 regions: The Balearics (+2,4%) Galicia (+1,6%), Castilla y León (+1%), The Basque Country (+0,9%) y La Rioja (+0,6%).
– Prices rose just by 2 €/m2 in Barcelona, to 4,084 €/m2. Even so, prices there are still below where they were 5 years ago in Q1 2005. They are down 16.4% from the peak of 4,888 €/m2 in Q1 2007.
– Madrid fell 0.4% in Q1, to 3,831 €/m2, 11.2% below the peak of 4,315 €/m2 in Q2 2007.
– Valencia fell 0.7% to 2,335 €/m2, 18.4% below the Q2 2007 peak of 2,861 €/m2.

Asking price discounts from Idealista

Idealista discounts reported by region

Thoughts on “Growing number of resale vendors dropping their asking prices

  • Charles Mackenzie-Hill says:

    A very well written article and some good points. I do feel though that from hands on experience especially in the Marbella area that two things have to happen. The sellers have to drop considerable or the buyers have to understand that if you want a property in Marbella that’s the price. It could be argued that you get more bang for your buck else were, that’s true and ideal if you want to live or have a holiday home else where. The thing is, some of the properties that we have on our books, tend be owned by sellers who are not in a hurry to sell. That somehow have this mystical figure that needs to be reached before seriously considering an offer. With time and with the influx of new people in the many thousand and the possible shortage of new builds, Then I can see today’s prices being achieved. But for now we seem to be at an impasse, until the bottom of the market is felt to have been met.

  • Charles Mackenzie-Hill says:

    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. 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?

  • Rental yields can be used to determine the state of the market, so long as people who want to rent.

    So for that place, if putting down 50k deposit, youre looking at monthly repayment of around € 1,080 for a 25 year mortgage. So instantly out of pocket by 450 euros a month, and of course you’ve shelled out 50k which could have been invested elsewhere that would have given a far better return that the spanish property market in the next 5 years.

    I guess these people who are in no rush to sell are happy to become poorer by the month.

  • Quote: I guess these people who are in no rush to sell are happy to become poorer by the month.

    Id have struggled to put it better adiep.

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