Property Prices On The Costa Blanca Spain - Going Up Or Down?

WHAT'S HAPPENING WITH PROPERTY PRICES ON THE COSTA BLANCA?

This is only my opinion but the word on the street is that it is flat and buyers are scarce. You either take the view that prices will drop or that this is a great time to buy as sellers WILL take offers if they are really keen to sell.

I'm frequently hearing stories such as villa on for €535,000 - sold for €385,000 or villa on for €620,000, went for €580,000.

I've seen many places on the market for a year now although houses priced much more sensibly have sold. Much depends on the seller's circumstances and their appreciation of how the market works.

So how did we get from boom to, well not bust, but let's call it reality check?

* Mainly it seems the British who are the main buyers (the Germans used to be 10 years ago before they went into recession) slowly ran out of credit - they had already remortgaged to the hilt and maxed out on their credit cards. With prices hitting insane levels they just couldn't afford to keep pushing them up any further.

* As prices leveled out in the UK, people naturally became less enthusiastic about buying abroad.

* As prices got so high people looking to buy for investment backed out as yields got so low i.e. the rents would not cover the mortgage payments or it made sense to park their money in the bank and get more in interest payments.

* The TV programmers realising they had overdone the move abroad ones, suddenly began the backlash programmes with new features on the nightmares that people had endured. Buildings collapsed, land was grabbed, criminal gangs were on the rampage - and that was just the mild ones!

* As always happens in a property boom, the supply exceeds the demand - there are so many new villas being build, so many blocks of apartments, that there are not enough buyers to fill them all.

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Why did prices rocket?

Will prices go up - or down?

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Buying Property in Spain - Main Index