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Euro very strong ; latest rates
Euro -Dollar 1,512
Euro Sterling 131.2
This is bad for Spain, British people wanting to buy in Spain and those completing on off plan properties.
It is difficult to see any good news at the moment, but to quote the Master Noel Coward, “Better times are just around the corner” hope he was/is right.
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The internal market isn´t dependent on the exchange rate. The UK market is not significant enough to shake the Spanish economy.
However, those in the UK paying mortgages in Spain will see the repayments creeping up because of this low rate.
Hence more properties coming onto the market at cheaper and cheaper asking prices.
If the Spanish 1st time buyers find these prices interesting enough, I suspect Spanish native estate agents will pick up the benefits.
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The internal market isnt dependant on the exchange rate and neither is any one on euroland.
The spanish are reticent as the interest rates rise and more importantly the young uns who could get 125% now cannot as banks restrict criteria. Also they are being warned off and are also worried for their jobs – that is having an effect.
More properties are coming onto the market but not necessarily cheaper in real terms as the sellers bought highly geared in the first place and now their outstanding loans are equivalent to the bank valauations – meaning in reality their properties are pretty much unsaleable at that price as buyers are buying well under bank vals.
I do sell to the Spanish and see less enquiries and my spanish colleagues all say the same.
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I guess it may vary area by area Inez, dependant on the regional economy. I know in the CDS things haven´t been too well for the local economy, however an ERA office near to me are doing reasonably well with Spanish clients and British distressed vendors. The same thing in my home village, a Spanish agent there is doing well selling UK owned Casas de Campo´s for crazily low amounts compared to when they first came onto the market a year or so before. It seems some Spanish are buying second homes in the country knowing the Brits are desperate to go at any price.
Again, this is an area thing for sure.
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Peter Good wrote:selling UK owned Casas de Campo´s for crazily low amounts compared to when they first came onto the market a year or so before. re.
Can you give us some examplex of “crazily low amounts”?
How much percent is the price decrease as compared to when they first came onto the market a year or so before?
In what concerns the exchange rate, now it might really start to be the time to drive a hard bargain for a property in USA. The Pound might be also be soon thrashed with respect to Dollar. The Euro prices are becoming prohibiitve for Brits as we speak…
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@Peter Good wrote:
It seems some Spanish are buying second homes in the country knowing the Brits are desperate to go at any price.
Peter, is your experience that there are now significant numbers of ‘Brits desperate to go at any price’ in your area?
I’m not an EA, but I do get the impression inland of the CB North where I live, that most people are sitting tight and ‘battening down the hatches’ at the moment, rather than selling out of desperation.
I fear that is yet to come.
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Peter Good is an Estate Agent who seems to know what he is talking about. His comments here suggest he has first hand knowledge and collegues who confirm a trend. Then there are comments like how much cheaper?? by a failed investor. Others who claim not to be an agent yet know better even though Peter is commenting on his specific area that bears no resemblence theirs.
If you are the owner of sock factory or other minor business what on earth qualifies you to dismiss an agents observations about an area you know nothing about:?:
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Paddy,
I didn’t claim ‘to know better’ nor did I ‘dismiss an agent’s observations’.
I asked Peter to clarify whether there were *significant* numbers ‘desperate to go at any price’ in his particular area.
Peter has previously stated where his office is located, and because I have a rental property nearby, you might appreciate why I asked the question.
I followed that up by giving my *impression* of what Brits are currently doing in my home area, a CB inland village.
If UK-owned casa de campos are going for ‘crazily low amounts'(compared to last year) in Peter’s home village, again you’ll probably appreciate why I asked the question.
As it’s an ‘area thing’ with us both living/working in different parts of SE Spain, there might be a ‘resemblance’ in the near future.
By the way, this particular sock factory owner knows that region very well, having previously worked for an EA based there.
Did your dog bite you tonight?
🙄
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@iano wrote:
Paddy,
I didn’t claim ‘to know better’ nor did I ‘dismiss an agent’s observations’.
I asked Peter to clarify whether there were *significant* numbers ‘desperate to go at any price’ in his particular area.
Peter has previously stated where his office is located, and because I have a rental property nearby, you might appreciate why I asked the question.
I followed that up by giving my *impression* of what Brits are currently doing in my home area, a CB inland village.
If UK-owned casa de campos are going for ‘crazily low amounts'(compared to last year) in Peter’s home village, again you’ll probably appreciate why I asked the question.
As it’s an ‘area thing’ with us both living/working in different parts of SE Spain, there might be a ‘resemblance’ in the near future.
By the way, this particular sock factory owner knows that region very well, having previously worked for an EA based there.
Did your dog bite you tonight?
🙄
Iano, no offence, you are one of the few posters here who come from a well balanced side of the forum.
Just to add insult to injury, no she didn´t bite, she is on heat and we had to run the strays, I felt like a protective father.
I can see your interest in the area trends. As an ex agent I still like to keep up with such things myself.
Anyhow, once again, no offence meant. 😳
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@katy wrote:
Whys would all estate agents know all the facts? 90% of them were selling cars or working in a packing factory a couple of months ago 🙄
A sad but anticipated generalisation, based on no facts, with even less knowledge.
Yet another anorak who probably failed a large agents iniatiation test.
Ex agents can always spot a wannabe.
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Personally I am LOVING this exchange rate movement!
Three sales this year to Spanish first time buyers, able to enter the market for the first time and buying gorgeous apartments, fully-furnished from British vendors who bought off-plan in 2002/4 and are selling now for less for than they paid for them….BUT, making up for the loss with the fact that the exchange rate in now in their favour and they’re sending their euros back to the UK.
Bring on 1.30€/1.00£ I say.
Sarah Dodgson
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@sdodgson wrote:
Bring on 1.30€/1.00£ I say.
It’s getting close, currently it’s touching 1.306€/1.00£.
Though no doubt if it does touch 1.30€ it will immediately bounce back up as people profit-take at this ‘landmark’ level.The dollar is also getting a thrashing against the euro at the moment at 1.52$/1€.
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From a forecast report I read RBS are expecting EUR/GBP to top out close to here, but the bad news is it doesnt see GBP going back to levels we saw in last few years in fact they are predicting 0.74 as a low well into 2009. Markets always have a habit of overshooting so we may see close to 0.8 (1.25) before we see a top. But I have seen other predictions of 0.85 ( 1.1765).
I think anyone trying to sell property may well be better trying to attract other Northern Europeans that don’t have exchange risk when buying. -
sdodgson wrote:Personally I am LOVING this exchange rate movement!
Three sales this year to Spanish first time buyers, able to enter the market for the first time and buying gorgeous apartments, fully-furnished from British vendors who bought off-plan in 2002/4 and are selling now for less for than they paid for them..
Bring on 1.30€/1.00£ I say.
Sarah Dodgson
Three happy persons, three million unhappy (tourists, potential buyers, etc).
Who do you think likes to pay in 2008 about 20% more for holiday expenses than in 2007?
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Claire wrote:Not us. 🙁 Spain not on our agenda for a holiday at the moment. We usually go twice a year for approx 4 weeks in total. Even though I hate flying, the American Dollar is enticing.
If the economic situation in UK worsens, the $ might gain on the £ too. USA might start the recovery sooner (not the property market though) in 2009-2010…
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Its a combination of battening down the hatches and others getting out before it gets worse as they know tey cannot hang on any longer. Part of the natural fall out
I agree with Sarah as the Spanish are out there buying – geting fussy too, but at least there is movement.
There are also normal buyers starting – it was early in the season for them and I have jst spent a delightful morning with a couple who have been tenatively looking for 4 years! The bad press hasnt put them off – I asked! – and its where they want to be – also many of their friends own and play golf in the Calahonda – Estepona area and they want to be beachside.
My colleagues sold one of my units (well, taken a reservation anyway) and they are spanish dealing in the spanish market. And I have 2 spaniards call me about how the auctions work. Now THAT tested my language skills!
Other than that its a glorious day today, quite hot and I reckon I will be in shorts for the weekend, so Im happy – guess thats all that matters really!! 😆
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Up here in Catalonia the weather is heavenly. All the almond trees in Tarragona province are in full blossom, so beautiful it makes you want to weep. We’re off to a calçotada and BBQ in the Alt Peneds tomorrow, so I shall be tucking into the local wines surrounded by the scent of the almond blossom. If you can avoid a property nightmare life is good.
Good weekend all. Hangovers all round.
Mark
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