2 months into the year and we’re now getting confirmed figures from the relevant sources for the property market for the last quarter of 2014 and the year overall.
Notaries, the ones who are clearly the in the know about property sale completions, reported seeing a 20% increase during 2014.
40% of properties bought in 2014 with mortgages
Mortgage rates have remained reasonably constant and just under 40% of properties bought last year were bought using a mortgage. One thing that surprised me was that the average loan to value from the bank was over 75% proving that the banks are starting to open up the doors of their safes and handing out money to credit worthy customers – if you’re buying a holiday home, you’ll need to consider that banks will probably only lend you a maximum of 70%, subject to your credit check etc. Click the following link for more information about mortgages in Tenerife.
The land registry office of Spain showed that the majority, 13% of all properties sold in 2014, were bought by foreigners, in fact for the last 5 years this figure has increased year on year with 2014 proving to be the highest level of foreign buyers in history. Add to that a total of €10.2 Billion spent on investment properties which was only beaten by the results of 2007 and that was at the pinnacle of the housing bubble, means everything points to a recovering market.
British buyers still top the table
British buyers still topped the table by being the largest group within those foreigners and that being attributed in no small part to the fact that the exchange rate for Sterling to Euro was at its best for the last 8 years and what with the massive increase over the last 6 weeks or so, this looks like it will have another impact on British buyers for 2015.
TINSA – Spain’s largest property valuation company, reported a drop of 2.7% in average property prices throughout the country during the month of January 2015. This is quite a regular evidently as TINSA says that this is the first time since 2008 that property prices have dropped less than 3% in a January. The Canary Islands ranked alongside the Balearics as being the only municipalities that showed a positive result in price increases during 2014 with an increase of 3.8%.
Is the market recovery coming sooner than we think
The property market continues to be at the forefront of peoples minds as Ignacio De la Torre, a partner in the financial advisory company – ARCANO, said in a presentation to a group of Real Estate professionals recently, that due to his research and investigations, in his opinion the property recovery in Spain will be here sooner than we think. Furthermore, his research is not based upon the normal type of indicators that would be involved in this type of result, he uses information from movements in the financial markets and macroeconomics and believes this to be a better indicator than analysis of a more traditional method.
Enjoy the ride
Are we on the start of a property wave? the pointers and indexes seem to look that way…let’s enjoy the ride.