Report From Spain

[Jim Allen]

Hi all.. How do the forum members view this report

August
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By h.b. - Oct 13, 2010 - 9:41 AM
EFE archive
It makes the eighth consecutive month of improved sales, when compared to last year

House sales in Spain continue their recovery with the latest data from the National Statistics Institute showing the eighth consecutive month of increases.

Sales during August were 29.6% higher than for the same month last year at 43,817 homes. Of these 53% or 23,310 were new properties, and 46.8% or 20,507 were resale.

57% of the sales were concentrated in the regions of Andalucía, Madrid, Cataluña and Valencia.

The August increase follows rises of 16.4%, 7% and 11.9% over the previous three months, and for the year so far sales are 13.8% higher than for the same period in 2009

Read more: http://www.typicallyspanish.com/news/pu ... z12F8IDlyU


Jim Allen

[katy]

Hi, I read this in Sur this morning. I find it very strange as even in the boom years nothing happened during August. (almost impossible to get a Lawyer or a Notary working) According to comments made in the Spanish papers they say the figures are high because when banks formally take posession the transactions are counted as a sale. Also included in the figure are inheritances.

Could be true as the estate agents are always say they are selling like hot cakes Time will tell.

[julian]

"even in the boom years nothing happened during August"
august is always a slow selling month, but not as slow as "nothing", and the figures compare with the same month of last year
"Sales during August were 29.6% higher than for the same month last year"

how does a bank take possession in a house sale?
transactions are a sale on the date of the escritura.

[katy]

When a bank forecloses on a property or a development these are recorded as sales, when a property changes owner because of an inheritance these transactions are recorded as sales. I am sure you know perfectly well as whatever else you are not thick! I also read recently that the number of new mortgages has fallen.

Read this comment:

Transmisión de derecho de propiedad no es igual a venta. Máxime si vemos que el número de hipotecas ha caído. Ahí lo que hay es un mayor nùmero de ejecuciones hipotecarias. Los bancos adquieren las viviendas.

[julian]

"When a bank forecloses on a property or a development these are recorded as sales"

"Transmisión de derecho de propiedad no es igual a venta"

is that not contradictory?

[katy]

No, the poster is pointing out that although they aren't really sales they are included in official stats as sales. Everytime a person loses their home to a bank it is counted as a sale.

[julian]

and who is the poster?

[katy]

Me

[knowal]

The report is certainly not borne out by local anecdotal evidence, which is that the property market is at rock bottom, and struggling to move off it.

[Jool]

All the Agents on the Costa Almeria are reporting a much busier year this year than last, but in some cases people are better off giving the property back to the bank officially (dacion en pago) than selling as prices are rock bottom.

Banks are distorting the market as they offer 100% mortgages on their properties, ie repo´s or those they accepted d-e-p yet de-value many other properties or set much higher ltv requirements to make mortgages on other properties impossible.

[ian.wilson]

Hello,

I work in Real Estate, though not sales, luckily I work in the IT side of things and translating for clients at notary. We have sold 10 Properties in the last 2 weeks and have 10 more clients arriving from abroad by the end of next week. What is selling is cheap properties or bank repossessions bought directly from the bank. Things are moving again but sellers do have to be aware that properties on the costas are not worth what they were back before 2008 or (the boom years). You can now buy a brand new already built 2 bed 2 bath good quality apartment 5 minurtes walk to the beach for €120,000 and the bank will give you a 100% mortgage (fact). For us a small commission is better than no commission at all, we are busy. Oh and August has traditionally always been a slow month.

Regards
Ian

[katy]

I personally know 2 agents who say the same, strangely neither of them have any money

[ian.wilson]

My boss, pays me every month

[Jim Allen]

Well you doomers They cant all be wrong.

37621 dwellings sold. But as you can see that market as not continued to fall. Although as an average we do appear to be looking at around 34.000 sales a month.But that appears to be because 4 low months have brought the average down

33,060 aug 2009
37,621 sept
33060 oct
34828 nov
32148 dec
38263 jan
41033 feb
37,561 mar
34326 apr
37787 may
37297 jun
43838 jul
43817 aug 2010



Again the the 43.817 refers to the the merchanting of dwellings. inheritance, swaps and others bring the figure up to 70.569 on urban dwellings.

If we were to include all urban and rustic property types (incl. plots), the full figure for the transfer of property rights stands at 152.836

_There was the top many got caught as with any market .How many will miss the bottom.


Jim Allen_ _______________

[katy]

If sales are up why have the number of new mortgages fallen for the past few months

I don't think prices have touched the bottom. A look around what is for sale close to where I lived and some are really overpriced. One which was priced at 995,000 was reduced last year to 795,000. Now on sale at 695,000....will probably be 595,000 next year! As I said we shall see. I remember a similar thread to this lasy year and a few came on to say agents were busy.............

Historically the last spanish property slump lasted at least 5 years and this recession is so much worse.

[ian.wilson]

Katy, not everybody needs or wants a mortgage, 50% of our sales are cash sales no mortgage required.

For instance Scandanavia in perticular Norway is booming everybody is doing better than good. Most of our cash purchases are from Norwegian clients.

I don´t sell or work on commision but get paid a salary why would I lie

Ian

[Julie]

Maybe people who have spare cash are buying as investments then going to wait for prices to rise, I myself am doing this, but not in Spain, in the uk, might as well put cash into property than the bank, at least the property prices will eventually rise, but to be honest I personally wouldn't invest in Spanish property,unless it was in Madrid or a big city, but maybe the Spanish themselves are doing, lots of bargains to be had at the moment.

[katy]

Katy, not everybody needs or wants a mortgage, 50% of our sales are cash sales no mortgage required.

For instance Scandanavia in perticular Norway is booming everybody is doing better than good. Most of our cash purchases are from Norwegian clients.

I don´t sell or work on commision but get paid a salary why would I lie

Ian

Funnily, our Norwegian friends sold to another Norwegian...the sale was held up for months whilst they managed to get a mortgage. I did not say you were lying but many agents are saying that they have sold 5 or 10 in a month, Viva claims to have sold 20 in one month this year (why are they all round figures ) The amount of *beep* I have heard from agents, much of it at the golf course, I would believe there were more selling than in 2004 Didn't hear much from them the last 6 months we were there....they all couldn't afford their membership fees

As someone else said "The only thing that comes out of an estate agents mouth is a four letter word...HYPE

Julie, I think you are doing the right thing. We have some terrace houses up North, always rented, no voids. A friend bought an apartment in Spain last year as an investment, thought it was a great price drop and it had a long term tenant. One year on he has no tenant (never has been). The apartments are selling for 20,000 less than he paid and he has community fees of 150 per month. Would have been better leaving his money in the bank at 2%

[ian.wilson]

katy,

I`m not an estate agent i´m a Technical Support/Web Designer that happens to have lived here most of my life so speak fluent spanish, I go to translate at the notary a lot lately. I am only saying what I am seeing personally where I work.

At least I am working for a living and getting paid a wage.

Believe what you like

Best Wishes
Ian

[Jim Allen]

Yes true why are mortgages down and sales seem to be holding up.
Which is the truth.
Julian has pointed out that it could just be cash that’s talking after all not lots of alternatives for investments at the moment (or is there?)
Property at the right price, in the right area with a medium to long term view may be a very good decision only time will tell and for us to guess.
Hate to include the U.K but as we have sweeping statements that Spanish property prices have further to fall surely this involves to many factors such as different areas stupid unrealistic prices that some put their properties on the market in the first place
If my neighbour either in the U.K or Spain put similar properties on the market at the same time and one was to have an overvaluation then indeed it would be seen as fact that one would show that there is a fall in value but only to realistic levels of the other responsible valuation.
At the top of the market you also have many that paid well over the top so further to fall.
Mixed with data that didn’t take into account the brown paper bag this its impossible to get much idea really
If the sales figures are right and they can show that then no matter how its funded it must be positive news.
At the end of the day there is always a top and always a bottom. If anyone can be sure where it is then lets me have the winner at 4.30 at Kempton on Saturday.
Promise if I win I will pay for the beers Julian but only at the Euro each.

Jim Allen