Asking prices for Spanish homes fell 9.5pc over 12 months to the end of April, according to data from Idealista.com, a leading Spanish property portal.
With Spain back in recession, and banks refusing to lend on anything but their own properties, home owners trying to sell have no alternative but to drop their prices. Judging by the ongoing collapse in sales, it looks like it hasn’t been enough.
The average resale property in Spain now has an asking prices of 1,993 €/m2, down from 2,202 €/m2 a year ago. On a monthly basis, asking prices fell 1pc in April.
Asking prices fell the most in Castilla La Mancha, Navarra , Murcia, and Extremadura, and the least in Castilla y Leon, La Rioja and Galicia.
You can read the full monthly house (asking) price index report from Idealista here (pdf in Spanish)
Steve A says:
I’ve ben comparing average advertised prices to average sale prices for many years. Advertised prices seem always to be consistantly 50% higher than average sale prices. Part of the reason is that adverts include estate agents’ commisssion. They also take no account of negotiated discounts, nor in some cases of ‘black money’ transactions. Some, indeed half, of adverts are priced at even more than 50% higher than local average sale prices. Such madly optimistic property owners do not get a sale at all. Many such properties have been on the market for five years or more, since the owners just cannot grasp that the true market value of their properties is (and often always has been) sometimes only half what they think they are worth.