House prices
 

I watched yesterday a couple of old episodes of 'place in the sun' centred around the costa blanca.

What level do you think house prices have fallen back to. Maybe it's too general a question but I think 2007/8 seems about right to me.

Re: House prices
 

I would have thought a lot less than that, would suggest early 2000 or even earlier.

Re: House prices
 

Definitely very much earlier than 2007/2008.

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2007-8 was the peak according to this diagram, though it only shows new builds. They are now back to about 2004-5.

http://upload.wikimedia.org/wikipedi..._n_jun2009.png

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Often worth looking at Property Insight for house price info.

http://www.spanishpropertyinsight.co...ail/#more-7911

http://www.spanishpropertyinsight.co...table-2q12.jpg

Of course all figures have to be taken with a pinch of salt. A good area will hold up better, and a poorly placed property may have decined more than the average.

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On the programme I was watching was a 3bed villa with pool and granny flat in an area called Rafalet near Javea, the price in 2008 was £300k. A quick look at agents on the web show loads of similar properties for around the same about 350-300k euros. Is it just estate agents being hopeful or is this a fair price.

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A quick look on Idealista seems to bring back 3 bed villas (with pool) for 230k or 260k euros
http://www.idealista.com/inmueble/1215205/
http://www.idealista.com/inmueble/1620151/

Are they in the ball park? Still expensive to me, I suspect next year will be even cheaper.

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Thanks for the links Stevie, they are cheaper than what I have found and very similar.

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I looked at a finca near Zafra in 2004 the owner was asking €180,000 the English agent was asking €205,000 I turned it down, but it sold shortly after.

I have since seen it on the market at more than €350,000 but it is still on at €290,000 today.

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When people talk about the amazing price crashes in the Spanish housing market, they are looking at those horrible new builds in cheap areas, not somewhere like Javea.

Rafalet and similar areas around Javea are in a different class, and I'm surprised that a detached villa there, with a swimming pool and granny flat is for sale at only 300K. I lived there some 16 years ago, and at that time a villa in Rafalet would have cost around the same amount, proportionally.

Re: House prices
 

The Spanish property market peaked in 2007

Since then there has been a 30% drop on average (2005 levels), although this is more like 50% on the Costa del sol and Costa blanca (2001 levels)

It doesnt matter what price some people have their properties up for, many have been up for sale for 5 years now, or more. Its want they sell for, and sales are at historic lows

The magic figure for me is 1,000 euros per square meter. Once they get below that for a good property in a good area then I'll think seriously about buying. There are already some flats or rundown villas on the CDS for that price.

Obviously this depends on the area too. In the middle of Barcelona/Madrid this will never happen

Re: House prices
 

I think many of these properties that have been on sale for a long time were bought when estate agents were charging exorbitant fees, which pushed the price up, now that has stopped many people are left with negative equity, in some cases a huge debt, and they can't afford to sell at less than they are asking, a vicious circle as they are still haveing to pay the mortgage they originally started with. These properties are likely to be on the market for many more years.

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Traditionally it is not usual for Spanish people to haggle or accept lower offers when selling property. You hold out for the asking price, even if it takes years.

Things are changing now I guess ...

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That is very evident here. The only properties being sold are owned by expats who are prepared to discount heavily.

It is changing though. The previous house we rented (Spanish owned) was on the market for 240,000 (it was never worth that) and I have heard that he would now accept 140,000. It won't sell for that but it's going the right way...

It is definitely a tenants market here at the moment.