The Price is Wrong

Estate agents in Spain have warned that the high prices being asked for properties are putting a brake on their activities.

The Federation of Real Estate Associations, a Spanish group with over 850 members, published figures showing that certain house sales are declining due to the high prices being asked.
The federation blames one factor above all other for this fall – the prices asked for properties.

“The uninterrupted increase in house prices since 2015, which has reached double figures in some cities” are the number one cause for the fall in sales, the association claimed.

They also blame mortgage providers, who they say have increased the cost of mortgages and introduced more demanding requirements for applicants. Politicians, and the extended electoral process in Spain, has also contributed to instability in the months in question. Read more...

 The Federation has urged Spanish politicians to hurry up and finally form a government, recommending that the government establish a State Housing Pact which will provide greater legal protection and incentives for prospective home buyers as well as “access top credit and loans for younger buyers.”

Although the figures are national, and do not reflect realities in all of Spain, they could also be heeded by Canarian sellers. Readers of this magazine have reported having little problem selling properties as long as they are willing to accept a slightly lower price than they’ve set their heart on.

The real estate sector remains healthy and is still most definitely a sellers’ market, but it seems that a little cold reality is arriving.

Getting it right
Pricing your property is a deIicate game. You don’t want to end up with less money than you could have made, but neither do you want one of those homes that sits on the market for years.

For that reason, research is vital. Look at recent sales in your area and gauge the trends. Also, try and work out what unsold properties in the region are doing wrong Get some professional advice and assess all the current trends before settling on a price.