Re: Re: Costas – When will this market bottom?

#103640

Anonymous
Participant

I hadn’t read that article until you mentioned it kgpoc:

https://www.spanishpropertyinsight.com/buff/2011/03/28/8-tips-for-house-hunters-in-spain-and-don%E2%80%99t-believe-the-official-figures/#more-5822

Have to say I have mixed feelings about it.

Prices are actually down “almost as much as the US or Ireland”

With the odd exception, this is simply not true. Asking prices are currently running around 25-30% lower than at the peak. This is what Tinsa reflects. In Ireland they have fallen – as has the market – by almost 50%.

Prices in middle-class districts of the main cities “will not fall anymore”

This I actually agree with, although I’d expect stagnant prices and inflation to eat away at even the value of these places for a few years.

Though he believes 2010 will turn out to be the bottom of the cycle for housing starts, he expects prices to continue falling everywhere but the best locations, especially in coastal areas with lots of holiday-homes, municipalities with small populations, and subprime areas with high stocks.

This strikes me as plausible. I broadly agree with it.

Go for a holiday-home in one of the best areas, where the best discounts are to be found.

An oxymoron if ever there was one. The best discounts are not to be found in the best areas.

By the very nature of this forum we tend to be more focused on the expat/Costas market where the boom was greatest and where the falls will also be. By doing so we can forget that in the big cities, particularly Madrid and Barcelona, there is a very different market.