moraira property for sale

Moraira El Portet villa for sale

Moraira El Portet villa for sale

Property for sale in Moraira and property for sale in Javea is still proving to be very resilient to the huge price reductions seen elsewhere, predominantly in the mass developed areas where we have seen dramatic price reductions.
Having seen the thousands of properties on the many housing estates in these areas, it’s no wonder!

For those British property owners in Moraira and Javea that have to sell, we have seen on average a reduction of up to 30% in sales prices to reflect the devaluation of sterling. But that’s it apart from a hand full of very distressed property sales. The market is ticking along with lots of lookers but not so many buyers unless a real bargain comes up. Still there are properties being sold and recently have seen an upward trend in activity. I think significant recovery will be a long time coming but recover it will if history is anything to go by.
As to what level and when is anyone’s guess Comments appreciated.

Sterling has recently made some significant increases against the euro and British sellers are now not wishing to negotiate as much as they once were. In fact some sellers have actually increased the sales price to reflect the stronger pound. The reduction was literally based on the poor purchasing power of the pound against the euro in the first place. But even with the 30% price reduction the British are only where they were two years ago when sterling was at 1.45 So nothing has really changed! That’s why we have lost such a significant amount of British buyers and the ones that exist, some 15% of what we once had, are looking for real bargains.

All things considered, I personally think price increases at this stage are rather short sighted, as the majority of recent sales have been led by the euro zone countries taking full advantage of the price corrections fuelled by the devaluation of sterling. If British owners are unwilling to negotiate or in some recent cases, increase their prices simply because of the recovery in sterling, they risk losing not only the few British buyers around but also the many buyers from the euro zone countries.
If you are trying to sell your property in this market, one has to assume that the majority of you are pretty desperate to sell because now is not the time to do it. Buyers know this and will put in, what may seem to you as, ridiculous offers. If you do not wish to be insulted by low offers, it might be worth your while considering the possibility of removing your property from the market thus saving everyone’s time.

Lets face it, low prices and easy lending created the property boom here in Spain and consequently prices escalated. Today, easy lending has gone and so too have the second homes and inflated prices with it.
The big gains you thought you had are simply not there. If you bought midway or at the end of the property boom, you would do well to recover what you invested in the first place. Many are doing just that to make a sale. Needs must!

It’s affected us all. I am one as well and we all have to face it whether we are selling or not. The majority of house prices have fallen by at least 30% and for those that have to sell the prices need to reflect what the majority of buyers can afford. Scary stuff but the market always dictates and there are always winners and losers.

The days of easy lending, over valuations and 80- 100% mortgages etc.. are no more. Today, Spanish mortgages can be very difficult to obtain, then it’s only 50 to 60% of the price paid and then subject to much scrutiny, excellent proof of income and job security. Most used to re mortgage their main residence in their native county to afford a second home here in Spain and simply come out as cash buyers. Those were the day’s!
Property prices in Spain have risen over the years to such an extent that it has become virtually impossible for people to raise enough finance, based upon the inflated equity in their main residence as they once did.
Their house prices have fallen in value and with it have gone the easy to obtain second mortgages.
So, how then are people, other than investors with liquidity, going to be able to finance a property purchase?

Unless buyers have sold their main residence and achieved a good sales price, which is highly unlikely, then paid off their mortgage and have enough surplus to buy a Spanish home, mortgaged or not, plus leave some money in the bank for a little capital; I think it’s going to be difficult to make a sale unless you drop lucky.

How many people do you know with say 350 – 500k cash in the bank? Personally, I think you could be waiting a very long time before your property sells unless you negotiate really hard. A bird in the hand is worth two in the bush!



Posted by on 07/02/2009 18:25:00

Anthony Bloom is the founder of the Moraira based Spanish Property Sales C.B business.
Established in 2002, Anthony and his partner Sally Bloom have dedicated themselves to the needs of the property purchaser. You can see their client testimonials! and their Google+ page

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