Vendors are biting the bullet and dropping their asking prices in record numbers, according to new data from idealista.com, Spain’s leading property portal.
The number of vendors asking less for their homes leapt to 30,646 in May, 7% of all vendors and an increase of 73pc on last year. They reduced asking prices by an average of 8.2pc in a year.
So far this year 134,107 vendors have dropped their asking prices, 69pc more than last year and 31pc of the total.
In total, vendors are now asking 700 million Euros less in a month, 3.2 billion less this year, and 6.4 billion less in the last 12 months. That is potentially a huge transfer of wealth from vendors to buyers.
The biggest number of vendors asking less was at the cheaper end of the market, with 8.3pc of vendors with asking prices below €200,000 dropping their prices, compared to 6.5pc of vendors asking more than €600,000.
In value terms, however, prices at the cheaper end fell by an average of 8.6pc compared to 9.3pc for more expensive homes.
By region the biggest number of falls were in Madrid (10.2pc), Zaragoza (9.7pc) and Barcelona (8.8pc).
Asking prices fell the most – by over 10pc – in Almeria (Costa Tropical), Tarragona (Costa Dorada), Avila and La Rioja.
The following table shows the average percentage fall in asking prices and the number of vendors dropping prices by region: