As we all know, the British were among the most active sellers in the last 2 years.
One reason was the Euro appreciation by 30% versus £ which allowed them an easy 30% reduction without any decrease in the Pound value for the property.
Now the £/Euro is only 20% under the 2007 value and it might go even (possibly much) higher.
Will British sellers increase their prices? Will some of them be able to change their plans and hold easier onto their Spanish properties (due to the decrease in the £ cost of living there)?
Whilst there is the oft mentioned “huge” statistic of properties unsold in Spain, it is frankly a myth that there are thousands upon thousands of Brits or indeed other Vendors with their properties for sale certainly on the CDS, where buyer interest was at an all time low, I can tell you that Vendor interest has also been at an all time low, because of the fall in prices, people don’t want to sell or they simply cannot sell, at a price lower than their mortgage for example.
As others have mentioned many people are simply holding, because a) prices are so low, not everyone selling is English, or b) because buyer interest is at an all time low, why bother putting your property for sale if you know it won’t sell at the price you want to hold for. As Mark pointed out the rates are at their highest for a year, and when they were that high we had an all time record month for the past several years.
What is great about the rate is that it will create buyer interest, and that brings the market back to life, but… if you wanted to sell and get out, and get the reverse benefit of the rate, then you had to be Katy and sell a little while ago really.
Anybody putting up their price to secure their Sterling requirment will be sadly left on the shelf, the time to take advantage of that situation was when the pound was at 1.05, Katy has obviously been a smart investor over the years and got out at the right time for sure, and so could and should have many other Vendors have dropped their prices, because you are absolutely right Floshmichael they mostly bought at 1.50 so a significant number who properly dropped did not see so much hurt, they may have dropped by 30-35% to effect a sale but they got a similar value in Sterling terms to their purchase.
But they can’t have their cake both ways really. We should have a lot more buyer interest now from the UK, and i believe we will, but no… increasing prices won’t work, not this side of 12 months or more in my opinion. We have to see a lot more people buying for that to happen.
As for people staying or going, I don’t think the rate will change that at all, you are staying or going for other reasons than the rate really.