Saw this today:

The sale of 5,000 properties (10% of the housing inventory in Alicante province) during the second third of the year (May-August) is being taken as a sign that Alicante’s housing market might have turned the corner. At least that is the way that Provia – Alicante’s developer association – sees it in its latest report on the sector. According to Provia, this is the start of a slow return to normality for a sector that, in the words of Jesualdo Ros, general secretary of Provia “can’t get any worse.”

and with the lower interest rates…........

Property sales will pick up in third quarter, claims expert
By: thinkSPAIN , Thursday, January 8, 2009

42,883 properties were sold last October, 28% fewer than during October 2007, according to National Statistics Institute figures released yesterday that reveal a huge difference in trends for second-hand properties (-43%) and new-build (-9%).

There was a corresponding 34% decline in the number of new mortgages and the average value dropped 10% to €135,202 euros.

Real estate expert, Gonzalo Bernardos, believes that, as a result of downward price pressure and governmental fiscal intervention: “The worst is over. We won’t see a return to the magnificent years. 2009 will be a bad year, similar to 1993. But, 2008 has been horrendous.”

Owing to the number of repossessions, Mr Bernardos went on to predict that: “In 2009, banks will become estate agents and start offering mortgages up to 110% if you buy from them,” and, given that the euribor rate used to calculate mortgages in the eurozone has fallen 2.5 points recently to below 3%, that sales will begin to pick up by the second or third quarter.

However, Gregorio Izquierdo, who is the director of studies at the Economic Research Institute and a professor at the UNED, is more cautious, and thinks that the recovery may not begin until the end of the year, which is by when he predicts that market prices will have stabilised. 

still think price are going Down , in spanish market , but if you English owner you still try to sale you house at 2006 price and no one , will buy from you , i see some off the English estate agents are dreaming off big prices awell .

Get an estate agents that will “TREAT YOU WITH RESPECT AND HONESTY.”

Don’t forget if you are trying to sell you may have bought for 140,000 euros which cost you 100,000 pds but you can now sell for 100,000 euros and put around 100,000 pounds in your pocket. OK you may not have made a profit (in this market who has) but at least you won’t have lost.

For what its worth, I wrote an article or 2 about this a while.

Looking at TINSA valuations

Price according to the spanish housing ministry

ROBI - 09 January 2009 08:57 PM

Don’t forget if you are trying to sell you may have bought for 140,000 euros which cost you 100,000 pds but you can now sell for 100,000 euros and put around 100,000 pounds in your pocket. OK you may not have made a profit (in this market who has) but at least you won’t have lost.

Very good point ROBI… something that alot of people seem to be missing.

My folks are after buying another house over at the Costa de la Luz, Cadiz area. Yes, we know it’s more expensive than Granada, but given the fall in property sales, it doesn’t seem like people are willing to lower their prices much. It seems like people want to ride it out and hope for the best. Possibly they paid over the odds in the first place and refuse to take what they consider to be a loss.

If someones desperate to sell, then it’s better as you suggest to walk aways with a sold property and very little or no loss, than sat indefinately and hoping to make a profit.

The exchange rate was working in alot of people’s favour when they bought the properties, but it still can in the current climate when you want to sell and beat the competition.

Hi,

What you’ve mentioned in the above article is absolutely right.  In fact, this is one of most popular area now a days from builders’ perspective.  The construction work in this area is increasing day by day.  Definitely, people will have some low cost flats to own especially for middle class families.

CSK

Hi,

This is one of my favorite forum.  I would say, thanks for providing this useful information.  I, must appreciate the tools provided by you.  Please keep updating me.

CSK

CSK will we try to be real in here ,

A bull market != “exuberance and a belief that good times will roll forever”. Saying and believing stupid shit like, “housing prices will go up forever,” or “companies don’t need profits in the new economy,” is. Large financial and construction firms built business models on housing growing forever. That’s stupid. Markets clawing back half their losses because the worst case scenario didn’t hit, but still being 30% off the recent high is normal. Plus I don’t know any bankers that are 100% convinced it’s going to keep going like this. Only the most optimistic of bulls would be surprised by another leg down.

You mean, like the consumer confidence numbers that cratered in January?

Hence my footnote. Though it may be wishful thinking right now, I’m still relatively optimistic.

Matt John