Has the housing crash started yet?
 

Just wondering since we don't live on the coast (unfortunately the Wife and I have to work for a living) I'm not current on prices. And what about the market, is anything selling?

Up here around Madrid, and specificity the north were we've been watching prices for the last year prices are down 25% and the market has ground to a complete halt, almost nothing is selling anymore.

Over in merry old England some buy to let flats have dropped 50%. Wonder if that will have any spillover effect?

From Expat Telegraph Price of new build flats 'set to crash'

http://www.telegraph.co.uk/money/mai...C-mpf_22022008

Re: Has the housing crash started yet?
 

This isn't spain related, sorry, but an interesting link on the buy-to-let disaster in the UK.

http://business.timesonline.co.uk/to...cle3406269.ece

Re: Has the housing crash started yet?
 

and

Sounds like Spain. I think the reason why most people on this board aren't worreid about a housing price crash is they won the housing lottery in the UK and have a substantial amount of equity and or the house is paid for so it doesn't matter as much.

Generally my advice for anyone buying is to avoid buying offplan and more importantly wait for a few years to buy, prices aren't going up anymore.

We have good friends who just purchased offplan and I'm trying nicely to tell them to get out of it.:( They are better off coming down and buying one of the hundreds of empty apartments at a steep discount.

Re: Has the housing crash started yet?
 

I dont think theres anything wrong with offplan. You're likely to find some discounts around ...... exactly as you would in the UK in a downturn. You're dealing with a builder. He wants to sell the houses!

Re: Has the housing crash started yet?
 

in the uk the market has ground to a halt..people are asking for stupid discounts on their purchases.but people arent ready to give their houses away.houses have been valued below what they would have sold for 6 months ago, as the estate agent say people wont pay it..
our house was valued at 500.000 6months ago..for 5 BEDROOMED bungalow...large bedrooms, village location etc etc..we have reduced to 399.950 for a quick sale.t
the estate agents we know in spain have told us that the market has slowed right down - practicallty died in some areas..no viewings few sales..
so i think it is country wide in spain and england..

carole.

Re: Has the housing crash started yet?
 

Yes, agree with Mitzy here.

As long as you are careful and make sure all is above board... make sure the promoter is legit with good reputations etc. no reason why you can't pick up a bargain 'or talk them into one' even with the falling prices. I know a Spanish lady who saved herself just over 120,000 (450 to 320) in one day on an low upmarket villa a couple of months back 'off plan'... just by squeezing the promoter. :)

Re: Has the housing crash started yet?
 

I'm just arranging a few days off to go property hunting a long the coast to see really what it's like on the ground there in terms of the market and being the right time to buy.

I must say that even comparing prices on sites for the past 3 months have shown a drop of as you say somewhere between 25-35% on the properties that have been on their sites for a while.

Having said that my friend just sold his large home in Alicante to a Dutch family, so things are selling.. I suppose as his was a huge property those are more rare so if you need such a place then the list is way shorter than if you wanted a 2/3 bed Villa.

The UK market is on a slow down and will get worse (probably much) before it gets any better but unlike anyone can say for Spain, the UK will rebound and we will all be having the same convo in 15-20 years again, our famous boom & bust scenario!

Problem why some people think Spain will never have their 'hay day' back is because of the amount of building that has and is still going on. The supply has outstripped demand by a massive amount. Then you have to factor in the new taxation laws in Germany and Holland regarding holiday homes.

Also, Unlike the UK where we are used to our properties selling in a matter of weeks, if not a few months, in Spain property can be on the market for years as it's seen as normal.

This is a problem as the sellers may just be thinking their property is not sold because it's 'normal' and not because it's drastically overpriced and as a result I think it will be at least another year (if not two) before to true extent of the property market in Spain is out in the open.

Having said everything, if anyone is buying a home and not an investment and honestly believe they will be here for a good numbers of years, none of this matters!

However I must say that the Estate Agents and builders need to rethink their "They're Foreign Price" or they will be left out in the cold.

Re: Has the housing crash started yet?
 

We live in Leeds and it is true there are loads of city centre flash flats that all look the same but my weekly look at the paper shows they are not asking lower prices - certainly they are not any higher - perhaps they are selling much lower than they are asking? Here in the suburbs prices are holding and houses are selling.

On the Spain front we are in the process of buying off plan - we put down the first deposits two years ago. We are not happy with things so far so have not completed - apartment and communal areas are not as expected or promised and we are not the only ones that are unhappy and are trying to either get our money back or exchange. The very large building company is very good at ignoring everything - even when exchanging for one elsewhere involves us paying more money. They have not reduced their prices one bit from two years ago!

Re: Has the housing crash started yet?
 

I know my landlady has a few flats first line to the beach, she wants to sell desperatelly and she simply doesn't have any interest. I have no idea why she is selling as around Valencia renting is good due to America Cup etc. but she is trying to sell without luck since last June. Even the commercial property she has right on the beachfront which would normally be snapped I should imagine, is empty for 2 years she told me.

So I don't know, it seems there are no buyers so you may be lucky and can get some good prices. But if you don't do it before summer season everyone will be renting and will start selling again in September.

Re: Has the housing crash started yet?
 

Yes, it's all relative to price... if no one thinks the property is worth the asking price then no-one will buy it!
There are people who have sold in a matter of months or even weeks, because someone came along who thought the property was worth the price. Worth sells, over priced sells less.

The Spanish seem to have a different way of thinking with some things, they will let a property sit empty for years rather than bring down the rental price (madness) or let a property sit on the market unsold for years rather than bring the price down!

Also... a Spanish lady I know has a plot of land that even today must be worth 1.5 to 2.5 million Euros, it is in a prime area even for the slump, when talking to her she is absolutely not interested in selling it... she is about 60 years old, lovely lady, active and not exactly wealthy but..... she just wants to have the land, not sell it... :) maybe people make the prices high because deep down they don't want to sell :rofl:

BTW, anyone in the Coin, Alhaurin area, I thought I had seen it all until I drove up to Coin from Fuengirola the other day and seen what they are doing at Baranco Blanco. Is this not the half a million square metres of green belt (1500 properties) that the Junta had stopped? doesn't look stopped to me! as he says... taking the thread off topic!

Re: Has the housing crash started yet?
 

Hi Carol Elizabeth,

Just saw this "Re the electricity, it is necessary to have a licence from Fadesa ("autorización de final de obra") to proceed to ask for the service to Sevillana Endesa (the electric company). Until this licence is ready, it's not possible to do this. Some other Promotors (on Esuri) have problems selling properties as they dont't have this licence either".

Stand firm money back with no licence or exchange for one with licence!

Regards,

John.

Re: Has the housing crash started yet?
 

Hi,

I think its a big shame that so many people have been ripped off by buying over priced property over the last 6 or so years its come to a near stand still the housing market is not moving and will take years to get moving again its been a false market with commisions from 5-10 and 15 or more percent put on top of asking prices (Resale) which alot of people dont realize!!!there has been no control and we are paying for it for those who have been sold a place for investment its a joke,. my advice is buy off plan the price is fixed and dont sell for a minimum 3-5 years look out for quality of build!! If you speek spanish its a plus i would not trust any of these estate agents if you know of anyone who has bought with no problems get recomended the good thing about this slump it gets rid of the sharks the goods will be still standing.
Remember to ask how much commision they charge!!

Re: Has the housing crash started yet?
 

I would say do not buy off plan now, your house may never get finished or if it does it may not get the facilities around it finished.

Re: Has the housing crash started yet?
 

This is the wisest letter I have read on this topic, A HOME SHOULD
N O T BE VIEWED AS AN INVESTMENT

Re: Has the housing crash started yet?
 

No, not quite correct imho ........ it shouldn't be viewed as a short term investment.

Investing in property all my life is one of the reasons I retired at 52 and was able to move to Spain ;)

I still see my home here as an investment which will give me a dividend in maybe 10 years time