Posted by: Rob in Madrid
House Prices are Dropping Fast - 11/28/08 01:25 PM
We've been hearing for a while that house prices will drop and for a while they managed to hold steady but in last few months (this is going back 2 years when we first moved here) prices have started to fall alot.
Just saw this today.
3 bdrm 2 bath 110 sqm apartment in Tres Cantos
288.000 OMG!!!!!!!!!!
2 years ago that was over 450.000 euros.
It's a well known fact that in bubbles prices overshoot on the top and when they burst they overshoot on the way down. Because Spain is so massively overbuilt I expect to see it way overshoot on the way down. Most commentators expect a reasonable 25% drop, a few brave souls are saying a 50% drop for 2 bedroom holiday lets on the coast.
I'm going way out on a limb and stating that in Madrid and Barcelona you'll see a 70% or more drop in prices. House prices are down 65% in California with no bottom in sight yet, why should Spain be any different.
I should add the reason why prices are dropping so much is that Spain and the world economy is in very very bad shape. 2009 the **** will really hit the fan. I wouldn't want to be a homeowner trying to sell.
Just saw this today.
3 bdrm 2 bath 110 sqm apartment in Tres Cantos
288.000 OMG!!!!!!!!!!
2 years ago that was over 450.000 euros.
It's a well known fact that in bubbles prices overshoot on the top and when they burst they overshoot on the way down. Because Spain is so massively overbuilt I expect to see it way overshoot on the way down. Most commentators expect a reasonable 25% drop, a few brave souls are saying a 50% drop for 2 bedroom holiday lets on the coast.
I'm going way out on a limb and stating that in Madrid and Barcelona you'll see a 70% or more drop in prices. House prices are down 65% in California with no bottom in sight yet, why should Spain be any different.
I should add the reason why prices are dropping so much is that Spain and the world economy is in very very bad shape. 2009 the **** will really hit the fan. I wouldn't want to be a homeowner trying to sell.