Market place in Spain – prices still need to drop more

It remains a purchaser’s market in Spain, as desperate suppliers proceed to slash asking rates in a bid to draw in more home-buyers, according to the current information from Spanish property portal idealista.

The figures reveal that over fifty percent – (54%) – of existing sellers decreased their asking prices by an average of 12 % in May 2012 contrasted to the exact same month last year.

The decrease in property asking prices is virtually in line with the latest property rate index from the National Institute of Statistics (INE), which shows that average Spanish house costs fell 12.6 % in Q1 compared to matching month last year, with the best decline– 13.3 % taped in the resale market.

The current INE index represents the biggest year-on-year fall in costs because the real estate problems started, with the most significant declines of practically 15 % in regions like the Balearics and Catalonia.

In spite of the downturn in Spain and the dire state of the nation’s property market, there is mounting evidence to suggest that more intercontinental homebuyers are aiming to use more affordable property rates.

Over 3.2 m searches were performed on Rightmove Overseas in May 2012, with Spain accounting for a quarter of all searches on the site. Standard areas, such as Costa del Sol and Costa Blanca, are the main locations of interest.

Overseas Property Shop director¬† Conrad A. Bedford commented – “We’ve seen lots of traffic on our site searching for Costa Blanca properties, we feel that prices still need to drop for more takers” …

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