Words: Ashley Rigg
Published: 14th March 2011
*Do you believe the agent, the central bank or the government?
When a buyer is faced with three sets of conflcting property price figures, the logical thing to do is to trust those which come from the most authoritative source.
However, when would-be buyers look at the Spansih property market, the most logical conclusion is not necessarily the correct one.
In an interview with property portal Fotocasa.es last week, Re/Max España President Javier Sierra stated that average prices are around 30% off their peak valuations with much steeper declines in some over-supplied coastal regions.
Interestingly, Mr Sierra’s statement coincided with a one from the Bank of Spain which put prices just 17% off their peak. The central bank’s figures not only contradict the view of one of the largest agencies in Spain, they also diverge from the “official” figures. The Spanish department of housing puts peak-to-trough price falls at just 13.1%.
The question for any would-be buyer is which figures do you trust? Do you believe the government, the central bank or an estate agent?
Unfortunately for the health of the Spanish property market, the obvious answer for consumers is not the right one.
Click here for a more in-depth discussion of the issue.
Source: Global edge
User Comments
I am in definite agreeement with Snr. Javier Sierra. Throughout our 4 offices here in Murcia property prices are down by between 30 - 40% off peak valuations. HUgh James Murcia Villas SL
Hugh James,
Murcia Villas SL