In Spain that is:
Reports on Spain's ailing housing market show sales volumes are down almost 50% since the summer and prices may suffer further falls of up to 30% — with holiday homes in tourist areas likely to fare worst of all.
The Spanish market has collapsed since 2007, with prices of new coastal homes and older houses in inland "white villages" popular with British buyers plummeting 50% or more.
Now Spain's housing ministry – which counts domestic properties as well as foreign holiday homes – reports a record-breaking 48% drop in sales between July and September 2010. This coincides with austerity measures being introduced in Spain, including the scrapping of mortgage tax relief.
In response to that, asking prices of homes on sale have plummeted as desperate sellers try to attract buyers. The property sales portal idealista.com reports that prices in 14 regions of the country fell in November, while rival website facilismo.com shows price falls across Spain for 39 months out of the last 40.
Barbara Wood, a buying agent acting for Britons, bought a seven-bedroom home in the tourist hotspot of Ronda; it was advertised at €1.5m (£1.25m) but the seller accepted €850,000. An Estepona villa had a €750,000 price tag but went for €485,000.
She says: "Discounts of 20% are way too little. Few sellers have the guts to advertise an asking price close to what they actually take, so buyers have to wade through masses of property with daft asking prices."
British developer Taylor Wimpey reports business has been better in 2010 than in 2009, but the firm still has flats at Puerto Pollenca on Mallorca, originally priced at €467,000, that are on sale for €215,000. Spanish developers have similar offers. British eco-property website Greenmoves.com has a three-bedroom country house at Castellón near the Costa Azahar, boasting solar power and an orange grove, reduced from €124,000 to just €90,000.
More from source: Pain in Spain's housing market goes on | Money | The Observer
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So house prices dropped by over 50% in Spain, with nice climate, pools etc - WTF is so fundamental that holds up house prices in this country?
Reports on Spain's ailing housing market show sales volumes are down almost 50% since the summer and prices may suffer further falls of up to 30% — with holiday homes in tourist areas likely to fare worst of all.
The Spanish market has collapsed since 2007, with prices of new coastal homes and older houses in inland "white villages" popular with British buyers plummeting 50% or more.
Now Spain's housing ministry – which counts domestic properties as well as foreign holiday homes – reports a record-breaking 48% drop in sales between July and September 2010. This coincides with austerity measures being introduced in Spain, including the scrapping of mortgage tax relief.
In response to that, asking prices of homes on sale have plummeted as desperate sellers try to attract buyers. The property sales portal idealista.com reports that prices in 14 regions of the country fell in November, while rival website facilismo.com shows price falls across Spain for 39 months out of the last 40.
Barbara Wood, a buying agent acting for Britons, bought a seven-bedroom home in the tourist hotspot of Ronda; it was advertised at €1.5m (£1.25m) but the seller accepted €850,000. An Estepona villa had a €750,000 price tag but went for €485,000.
She says: "Discounts of 20% are way too little. Few sellers have the guts to advertise an asking price close to what they actually take, so buyers have to wade through masses of property with daft asking prices."
British developer Taylor Wimpey reports business has been better in 2010 than in 2009, but the firm still has flats at Puerto Pollenca on Mallorca, originally priced at €467,000, that are on sale for €215,000. Spanish developers have similar offers. British eco-property website Greenmoves.com has a three-bedroom country house at Castellón near the Costa Azahar, boasting solar power and an orange grove, reduced from €124,000 to just €90,000.
More from source: Pain in Spain's housing market goes on | Money | The Observer
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So house prices dropped by over 50% in Spain, with nice climate, pools etc - WTF is so fundamental that holds up house prices in this country?
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