February 11, 2014 at 1:52 pm #57939
“Offers to buy Spanish homes fell short of the asking prices by 23 percent on average last year, damping expectations that the nation’s residential values have reached bottom, according to Idealista.com.
Bids were 22 percent less for homes in Madrid and 23 percent lower in Barcelona, according to the study published today by Idealista, Spain’s largest property website. Home prices rose for the first time since 2010 in the third quarter, official statistics showed.”
. . .
“Home prices rose 0.7 percent in the third quarter from the previous three months, the first increase since 2010, the National Statistics Institute said in December. Studies by the IESE Business School and property website Fotocasa showed that prices for existing homes rose 0.7 percent in July from June and 0.2 percent in January from December.
The data could give a “false sense” that prices, which have fallen more than 45 percent since their 2007 peak, have hit bottom, Encinar said.“
Emphasis is mine. Via Edward Hugh on Bloomberg:
February 11, 2014 at 1:57 pm #119137
And while I’m not disputing this, I’d like to know the data source for prices ‘offered’. If this analysis relies upon self-reporting of buyers, I would like to know what controls are used to eliminate false reporting.
February 11, 2014 at 11:37 pm #119145
In other words, asking prices are still 17% “too high”. Although I’d have thought most sellers would “price in” a transaction price about 20% below asking price. Nobody is paying asking prices these days.
February 12, 2014 at 11:38 pm #119166
In my experience Fernando Encinar has made the right calls throughout this crsis.. I still have never read an article where he thought that prices were at fair value.
Now I have a funny story that relates the valuation ideots Tasacion.. 4 months ago I meantioned I put in a bid on a house 20% lower than the asking price (and it was laughed at). Well, I still went ahead and did all the necesaries with the bank and asked for a quick valuation to guage the loan. Well the valuation came in lower than my offer. Last week while travelling my realitor called to see if our offer still stood because 3 attempted sales had fallen through. I told him it was not good but I had a new one at 10K less again (hey it is the right way to negotiate, should’ve taken the first one). Well again, I had to go back to the bank to get things lined up just in case and the bank have now valued the hosue at 10K higher than 4 months ago.
So the price is going down and the valuation is going up – seriously. So how do you think that shows up in offical figures, the price increased but still no sales?
I think the confusion that comes from these types of articales and everytime a Gov. Minister opens their mouth about price increases everyone wants to hold out again. In our case the owner is offended again, but this time I told them the offer is good for 1 month..
February 13, 2014 at 12:48 pm #119171
How can there be an increase in prices. Data out this weeks shows that Spain sold less houses last year than in 2012. Malaga province was a hotspot (if you could call it that 😆 ) selling just 914 more than the year before. Hardly enough to create a price rise given the amount of stock there. I suspect just an increase in asking prices as it’s an old Spanish custom to increase the asking price every year even if it’s been on the market for years.
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