Archive for September, 2009

 

September 19th, 2009

The collapse in Spanish property sales appears to be running out of steam, which is good news of sorts. The latest monthly sales figures from the National Institute of Statistics (INE) show there were 33,694 home sales in July (not including social housing), the biggest monthly sales figure this year, and only 19.6% lower than the same time last year.

Monthly homes sales have in fact been creeping up since April, when they hit a record low of 26,215 in the aftermath of the stock market collapse. As the volume of sales has climbed, year on year sales declines have improved too. On a cumulative basis, however, sales in the year to July are down 33% to 243,000.

New vs Used Transactions July 2009

For the first time this year, the number of newly built and previously occupied homes sold was almost equal, thanks to a significant improvement in resales, and a slight fall in the number of new homes sold. Historically, and under normal market conditions, resales are bigger than new homes, but since July 2008, and thanks to Spain’s property market crash, new build sales have been higher.

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September 19th, 2009

The sharp housing correction that has sent Spain’s economy into a tailspin is bottoming out, Housing Minister Beatriz Corredor told parliament Wednesday.

“Recent indicators show a trend toward stabilization in the housing market,” Corredor said.

Spain’s once-buoyant housing market collapsed last year as the global financial crisis worsened a correction that was already underway after years of overbuilding and spiraling house prices.

Data Tuesday from Spain’s national statistics institute showed the number of houses sold in Spain rose 4.7% in July, their third consecutive month-on-month gain, though they were down 20% from July last year.

Falling housing prices and interest rates are helping to improve the affordability of housing, Corredor added, saying this should stimulate demand.

The government has offered incentives to convert unsold homes into rental properties or to sell them to qualified buyers in social-housing programs. It has also said it will limit current tax incentives on home purchases from 2011 in an attempt to bring forward decisions to buy.

In a note to investors Wednesday, Citigroup economist Giada Giani said the rise in July home sales points to an improvement in Spanish property demand, but noted that housing construction indicators continue to “decline sharply, depressed by the huge amount of unsold inventories.”

Story from Nasdaq

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September 17th, 2009

Mortgage specialist Conti is convinced that for UK overseas property investors, traditional locations will emerge victorious from the global market downturn. According to the firm, investors are sticking to ‘proven’ locations as revealed in its latest ‘hot spots’ report.

France takes first place, accounting for 31% of enquiries received by the company so far this year, but Spain follows on with 22%. A surprising result in view of recent negative press. Enquiries have increased considerably with the countries accounting for 53% of all 2009 enquiries so far, compared with 29% in the same period last year.

Conti’s operations director Clare Nessling says: “British buyers are sticking to the more traditional overseas locations, especially those with history of providing good rental returns. The smart investor is no longer simply looking to where the best bargains for a swift return can be found, but to where security lies for a longer term investment.”

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September 17th, 2009

The Spanish house price index figures for August 2009 have just been released. See the graph and the table below for an up to date overview of the real estate market trend in Spain.

Spanish House Price Index August 2009 (C) Montes de Malaga Real Estate

Spain Coastal Inland
08-2008

09-2008

10-2008

11-2008

12-2008

01-2009

02-2009

03-2009

04-2009

05-2009

06-2009

07-2009

08-2009

-4.6

-4.9

-6.5

-7.8

-8.8

-10.1

-9.0

-9.7

-10.1

-9.8

-10.1

-9.2

-8.9

-8.3

-5.3

-8.9

-8.5

-14.3

-12.6

-10.7

-11.5

-13.5

-12.8

-12.3

-10.9

-10.3

-1.0

-1.7

-5.3

-6.3

-6.6

-10.0

-7.9

-8.9

-8.9

-8.7

-9.8

-8.3

-8.7

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September 17th, 2009

UK based Almanzora Group says that there are signs that in some sectors the market is improving, after it announced that it has sold properties worth almost €5 million in the Almeria region of south-east Spain in the past three months.

‘Over the years, the property market in Spain has proved to be extremely cyclical, much more so than it is in the UK. This recent market activity suggests that the wheel is turning again, at least for the better quality, more individual, properties in new and progressive upwardly mobile locations,’ said sales and marketing manager, Simon Coaker.

‘Prices have been at their lowest for six years but are bound to start rising again if sales of such properties continue at this level. No matter how great the oversupply of poor quality, mass built apartments, in secondary locations around the old tourism centres, the actual supply of good quality individual properties in relatively new, less developed, locations which are the future of residential tourism in Spain remain in short supply,’ he added.

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September 14th, 2009

Op slechts twee vlieguren van Amsterdam ligt het plaatsje Huéscar, in het noordoosten van Andalusië. En daar kun je, midden tussen de authentieke bevolking van Spanje, de zigeuners, in een grotwoning overnachten.

Na het ‘witte’ kustplaatsje Nerja en het stadje Baeza, draaien we voorbij duizenden olijfbomen om een rots heen en ontvouwt er zich een prachtig panorama. Met uitzicht op de op twee na hoogste berg van Spanje, La Sagra (2350 m), kleurt de langzaam ondergaande zon het landschap van lichtroze tot grijswit en van groen tot okergeel. Via een oprit waar menig vorst zijn vingers bij aflikt, rijden we de vallei in en naderen het lieflijk ogende dorpje Huéscar met in het midden één enkele kerktoren.

Lees verder in de Reiskrant van de Telegraaf.

Of bekijk onze koophuizen in de buurt van Huéscar.

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September 14th, 2009

Waarom er in Andalusië zoveel gebouwen doen denken aan Arabië en Noord-Afrika? De moslims heerste ruim 800 jaar over dit gebied.

Om de restanten van het zogeheten Al Andalus te zien, moet je naar de stad Granada. Hier vind je alles over de Iberische geschiedenis in de tijd dat de Moren heersers waren.
Het begint allemaal in de ochtend op de markt van Plaza Larga in het historische Islamitische kwartier Albayzin.

Vanaf hier heb je talloze stijle trappen omhoog, de wijk in. Probeer aan het einde van de stenen trede de zogeheten Mirador de San Cristóbal te vinden. De beloning is een panorama uitzicht…

Lees verder in de Reiskrant van de Telegraaf.

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September 1st, 2009

Euribor (12 months), the interest rate normally used to calculate mortgage payments in Spain, fell to a record low of 1.334 percent in August, down from 1.41 percent in July. Euribor is now 75 percent lower than it was this time last year, when it stood at 5.323 percent, leading to significant savings for mortgage borrowers on annually resetting mortgages.

After the fall in August, Euribor has now fallen for eleven consecutive months, setting a new record low in each of the last 6 months. Euribor has gone from record high to record low in the space of a year. However, mortgage experts do not expect Euribor to drop much further from here, certainly not below 1 percent.

Thanks to the latest drop in Euribor, the average borrower can expect to save around 316 Euros per month, or more than 3,800 Euros per year, on mortgages that reset around now. But consumer groups have complained that many banks are not passing on falling rates to customers, using the opportunity to raise the margins they charge borrowers.

Nevertheless, Spanish consumer group CECU has urged borrowers to use the fall in base rates to try and remortgage, noting that the number of people doing so is up nearly 65 percent compared to last year. CECU has also called on borrowers to report banks for including illegal clauses in mortgage contracts.

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