spanish property prices, where are they heading up or down?

Answer 1

Levelling out at the moment on the Costa del Sol - good time to buy.

Answer 2

It depends where you are looking to buy. On the Costa del Sol there is a glut in properties with lots of brand new apartment blocks standing empty, and there is also the scandal in Marbella where hundreds of properties have been illegally built and are in danger of being demolished.

The Costa Blanca area remains buoyant with prices increasing all the time, with the exception of Torrevieja where because of the high crime rate, people are leaving in droves. You can buy a property there for less than you could a year ago, but who would want to!

The boom on the Costas is the little known Costa Valencia, which covers Valencia City, Castellon and inland. There you can still find a villa for 150,000 euros - approx 100,000 sterling. I purchased my house for 147,000 euros 3 years ago, and have just sold it for 365,000 euros in Valencia.

Otherwise you have to go further inland to Galicia, Extremadura etc to find the really cheap properties, but the summer heat and winter cold means you have to be very hardy.

Answer 3

First of all where? and do you mean Spanish style?
They are obviously not inexpensive, you need to mention what state, the market & prices are different, in all areas, they vary so much, it'd all depend, always be more specific. But a Spanish style home does not go down, it's all about: Location, location, location. Remember?

Answer 4

Home prices never really go down,just because the value of the home never depreciates, unless it's left abandoned. The prices of proerty just isn't rising as fast anymore. During the boom you could ask $100K over the assessed value of the home here, but not anymore. The boom is over.

Answer 5

Hi i think that you can find the answer to your question at this web address www.assetz.co.uk
after that choose:Assetz property investment tracker and there you can find info not only for Spain but also for other countries in Europe.

Answer 6

Down, in the long term, due to forthcoming water crisis in southern Spain, plus too hot for comfort in a few years.

Answer 7

Up,up,up we have seen houses here go for 12000 euros 2years ago now worth 100 k definatly up.
regards tony with a big grin

Answer 8

California Housing Market

Southern California housing market is already negative in year over year medium price. So, we don't need address it separately.

Let's talk about the San Francisco Bay area.

SF Bay area housing market is going through the early stage of correction. It is likely to take a couple years to resolve.

During 1990's there were times when housing market in SF Bay area went negative. It started in 1990 and sellers, who entered the market at that time, had to wait until 1997 to unload their property with a gain.

Today, in 2006, we are in the early stage of another housing correction . Please see this page:
http://www.viewfromsiliconvalley.com/id157.html

The "Year over Year" medium price for San Mateo is -2.0%. If we consider inflation, then that is -5.5%. Because inflation tops 3.5%. For Santa Clara county, the gain is only 1.7%. That is lowest ever in the past 5 years. If we count inflation in our valuation, then it is -1.8%.

In addition, sales volumn drops dramatically, which means high end properties garnished most of sales, keeping the medium price high. While less appealing properties stays on the market longer and longer.

Inventories build up as sales down. Inventory for single family grew to 2222 units in July from 1500 in January this year. Condo inventory grew from 658 to 841 units by July from January. Why is inventory growing while summer is suppose to be a good selling season.

It is true that Silicon Valley is less sensitive to high rates, because engineers have more income. I doubt they can escape the correction though. They certainly didn't during dot-com in 2000 bust.

Finally, one more example.
If you go to http://www.mlslistings.com/, the listing MLS#: 648284 dropped their asking price from $565 to $535 in one month. This property locates in Sunnyvale, the heart of Silicon Valley.

How much will real estates drops in Silicon Valley?

Housing market continues to slump. Now we can calculate true value of a property easily. As price decline, we don't need to guess and factor in the potential price appreciation while calculating home value. Without the guesswork, figures are more accurate.

Let's use following example:

Today, a typical 15 years old, two bedrooms condo/townhouse is priced around $500,000 and $550,000 in Sunnyvale, California. Rent for similar condo/townhouse is $2000/month.

If you are a home owner, $2,000/month in rent means $20,000 a year in profit ($24,000 per year in rent, minus $4,000 maintenance costs). A $20,000 income is equilevant of owning $400,000 bonds or CDs, because current yield of 30 Years U.S. treasuries are 5% (5% of $400,000 is $20,000). Bank CDs have similiar yields.

In our example, the two bedrooms condo/townhouse is 20% to 25% overpriced. They should be priced at $400,000.

It is interesting to note that if we redo the calculation from buyer's perspective instead of seller's perspective, the figures are even more shocking.

Mortgage payment consists of two parts: mortgage interests and mortgage principal. The interests portion is similar to rent. If you pay interest, it disappears and doesn't add equity to the property. To fully simulate characteristics of renting, we assume buyer will apply for a zero down, interest-only loan.

It turns out that rent of $2000/month is equivelant to mortgage payment of a $340,000 loan at 7.0% APR. And comparing $340,000 loan to $500,000 or $550,000 price tag, from buyer's view, the two bedrooms condo/townhouse is 30% to 35% overpriced.

One may ask, why is there a discrepancy between two perspectives of the buyer and owner?

The discrepancy is a result of 2% differences in interest rate that buyer borrow comparing to yields of bonds and CDs that owners would get. We understand that buyer would always pay more. That is the premium of buying to own. However, looking from home owner's perspective, current housing market is probably 20% to 25% overpriced. We recommand investors to wait for a better entry point.

Answer 9

There going up, we brought our house in 2003 for about £65 grand its now worth around £225, grand but we wont sell because I enjoy living here as do my children.

Answer 10

House prices everywhere seem to be going up.