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http://www.elconfidencial.com/cache/2008/05/27/95_mercado_inmobiliario_espanol_caida_libre.html
A new nice one video from BBC.
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Hi Peterparra,
Yes, a good one indeed. It clearly demonstrates how a housing crisis affects our standard of living and can plunge any of us into financial disaster.
If Spain was outside the Euro, the Government would probably be cutting interest rates hard by now. As it stands, they can do nothing other than watch asset values fall and unemployment rise.
Could this be the beginning of their Euro exit?
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indeed the rot has truly set in, and has been made worse by fools hyping the market for the last few years. I recall some muppet on this forum saying ‘I truly believe there has never been a better time to buy in Spain’ just a few weeks ago, probably they were an estate agent . If the last UK property slump is a guide then we can expect a decade before prices start increasing in Spain. In the meantime it will take longer to sell properties and prices will continue to fall. On top of that is the problem that there is a couple of million excess properties in Spain. That one factor could keep prices deflated for even longer
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My point is that the market will take time to correct itself Peter. Check out http://www.housepricecrash.co.uk to see how long the UK house prices took to recover from the last boom. Everyone thinks the worst is over long before it actually is. Here in Spain we have the combined problems of massive over supply coupled with massive over valuation.
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@goodstich44 wrote:
apart from the few to whom money loss isn’t important, who on earth would still be buying, when we don’t really have any idea just how far prices will drop, and when it will bottom out?
This is the point, no-one will risk buying so long as the media is constantly telling everyone that the market is imploding. Everyone will wait, and then they will wait some more. It is the exact opposite of the situation we had 5 or 6 years ago. The estage agents will do their futile best to persuade us that there are ‘great buying opportunities’, but their voice is permanently tainted now, and no-one has much sympathy for the greedy agents that have contributed to this mess. It is a shame for the few good agents, but they also went along with the hype so you could say that the whole industry will take a good beating. In a declining market the bottom point will take longer to reach than most people expect. Anyone that tells you any different is probably an estate agent with a vested interest in self delusion.
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Every day the histories I get are more mad:
A spanish guy has created a web site where he sell lottery bollets of 5 euros in which the prices is his own home!!
http://www.elpisodeloscincoeuros.com/index.php
The web advertise that you can get a home for 5 euros (the price of the bollet).
Absolutely crazy!!
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@kingy wrote:
so peter, you are saying that the slump is over and prices will rise by the end of this year?
Did I say that????
I can see the slump continuing worldwide for up to and possibly beyond 2012.
I would like to see a return to house prices in Spain being 50% less than their equivelent in the UK, as it was at the end of the 90s. That was a major factor for interest in Spain by UK buyers.
Also back then the exchange rate was around 1 GBP = €1.80 (though it was pesetas at the time). Those 2 factors alone coupled with the very cheap cost of living and climate contributed much to the boom.
Will those price comparisons and exchange rates ever return? I honestly think not. Perhaps that´s a good thing because I´m certain no-one here in Spain want´s another boom like the last one.
I also hope that, if there is another boom time in the future, that Spain has new regulations in place for developers, town halls, lawyers, notaries and agents.
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@Peter Good wrote:
@kingy wrote:
so peter, you are saying that the slump is over and prices will rise by the end of this year?
Did I say that????
I can see the slump continuing worldwide for up to and possibly beyond 2012.
I would like to see a return to house prices in Spain being 50% less than their equivelent in the UK, as it was at the end of the 90s. That was a major factor for interest in Spain by UK buyers.
Also back then the exchange rate was around 1 GBP = €1.80 (though it was pesetas at the time). Those 2 factors alone coupled with the very cheap cost of living and climate contributed much to the boom.
Will those price comparisons and exchange rates ever return? I honestly think not. Perhaps that´s a good thing because I´m certain no-one here in Spain want´s another boom like the last one.
I also hope that, if there is another boom time in the future, that Spain has new regulations in place for developers, town halls, lawyers, notaries and agents.
I agree with your views Peter.
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@Peter Good wrote:
Spain has new regulations in place for developers, town halls, lawyers, notaries and agents.
That would be good.
However, it would require the collective will of the Spanish people to make it happen, and I don’t sense that.
The irregularities of the current system often frustrate the Spanish, but not to the same extent they do North Europeans.
I don’t know whether it’s their history, or just the way they’ve always gone about things, but there doesn’t appear to be any great desire from the Spanish for new regulation.
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The BBC reported that 10% of the entire Spanish economy (GDP, or gross domestic product) is related to the building industry at it’s peak. That includes estate agents, suppliers, raw materials etc.
The Spanish economy could therefore shrink (ie a recession) once the property meltdown gathers pace, so the people in Madrid are quite right to take this seriously. However they are 10 years too late. I would hope that lessons would be learned, but fear that they may not be.
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You’ve missed nothing Goodstitch. I chose to ignore the unwarranted comment. Kingy joined the forum two days before he posted that comment and for reasons best known to himself chose to be rude to me. My personal opinion is that he is somebody who has posted before but has possibly been barred by Mark recently and has come back under another name. It’s not the first time someone has done this and I doubt he’ll be the last. Just another reason why this forum is going in the same direction as the Spanish property market.
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no claire, I thought you were rude to me first and I think you know I am correct. No I haven’t been banned from the forum before…. but no doubt you will be asking admin to ban me since you clearly don’t like me or my views.
People ‘like me’ are nothing to do with the current state of the spanish property market although it is interesting that you would seek to link the two.
My views are very clear, that the property market has oveheated to a calamitous state as a result of unregulated poor business practice that has seen this country end up with 2 million surplus homes, additionally I believe that the agents have played a culpable part in all of this. If you disagree or don’t want to accept the facts as I see them then there is little I can do about it.
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@kingy wrote:
My views are very clear, that the property market has oveheated to a calamitous state as a result of unregulated poor business practice that has seen this country end up with 2 million surplus homes, additionally I believe that the agents have played a culpable part in all of this. If you disagree or don’t want to accept the facts as I see them then there is little I can do about it.
Sorry Kingy but “your views” are hardly earth shattering & unique. My view is that the Labour Party are having a tough time and that I dont think England will win Euro 2008 If you disagree or don’t want to accept the facts as I see them then there is little I can do about it.
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@jiminspain wrote:
@kingy wrote:
My views are very clear, that the property market has oveheated to a calamitous state as a result of unregulated poor business practice that has seen this country end up with 2 million surplus homes, additionally I believe that the agents have played a culpable part in all of this. If you disagree or don’t want to accept the facts as I see them then there is little I can do about it.
Sorry Kingy but “your views” are hardly earth shattering & unique. My view is that the Labour Party are having a tough time and that I dont think England will win Euro 2008 If you disagree or don’t want to accept the facts as I see them then there is little I can do about it.
sangria ?
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peterparra wrote:Every day the histories I get are more mad:
A spanish guy has created a web site where he sell lottery bollets of 5 euros in which the prices is his own home!!
http://www.elpisodeloscincoeuros.com/index.php
The web advertise that you can get a home for 5 euros (the price of the bollet).
Absolutely crazy!!
This is not a new idea, a couple in England tried to do the same thing over 20 years ago, price of the tickets was 10gbp. They took a lot of money but had to return it all , as it was deemed illegal under UK law at that time.
Assume it might be ok there now to do this type of deal.
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