A recent report from the Estate Agents association of Spain has reported that price declines have slowed as the year has progressed and sales seem to be picking up.
“…reports say that price declines have slowed”
The banks are saying that they are being a lot more flexible on lending, but when looking for a mortgage – criteria for loans is still tough and getting credit for buying property is still hard work, especially if you are not resident in Spain. Data from Spanish valuation company TINSA reports that some areas of Spain are still feeling the pinch and property prices are still falling, although there is a feeling that the drops are not as dramatic as they have been of late and that prices could be bottoming out.
“…maybe prices are starting to bottom out”
The question on most peoples lips then has got to be…when will the market return to normal or at least take a bit of an upturn? Fitch Ratings has suggested the year for a return to normal…so maybe an upturn in prices, is 2015. They think that property prices will have hit rock bottom by the end of 2014 and from then on it’s up up and away…!!! They forecast that property prices will have declined by 40% since their highs of 2007 – 2008. For Spain to be back to normal the banks are going to have to start lending and the Spanish economy needs to have a bit of an upward movement too. As I mentioned earlier, the banks are saying that they are lending, but it’s still a tough job to get a mortgage but with Bank of Spain predicting economic growth of just over 1% for 2014 and 2% for 2015, maybe the “green shoots” of recovery (Oh how I hate that statement…!!!) are finally coming through at last.
“…Bank of Spain predicting growth for 2014 and 2015”
It might just be that 2015 is the year of property price increases, which leads me on the property market in Tenerife in August 2014. This year has been a good year for sales, although currently it is on the quieter side however, that is explained by the hot summer months and the school holidays meaning that buyers and sellers have other things on their minds. Once things are back to normal however, I predict that this year will have seen sales in Tenerife well in excess of recent years and the prospect that property prices could be on the increase in 2015, might add a little urgency to buyers searching for properties – of course it’s always a bit cat and mouse when it comes to it, because if buyers know that prices could be on the up, so do sellers and so there’s always the chance that they may start to be inflexible on price movement and asking prices in general and as such this will start to push the market up as well.