Will we see an ongoing decline in Spanish property prices in 2011 ?
The best data indicates that prices are still falling and will continue to do so throughout 2011. The rate of decline appears to be falling so those looking for the bottom of the market should probably continue to wait.
Will low-rate mortgages continue to be widely available in Spain?
Most analysts are predicting modest rate rises but finance is still relatively cheap and easy.
The easiest way to get finance is to purchase a property from the bank itself, many are offer rent to buy options or low or no deposits. That said bank repossessed properties don't always offer the best value for money.
What should bargain hunters be looking for when searching for Spanish property?
Bargain hunters should be looking for "Pre-repossession distressed property". This is property that still has equity, where the owner cannot keep up to date with the payments and is in a position where he is forced to sell or give the keys to the bank. These properties often represent the best value for money.
As the banks that have been forced to repossess properties need to liquidate these assests, they will have to reprice their property portfolios. Look out for bank properties that have been significantly reduced in price.
Don't pay the full asking price. It's a buyer's market, make a low offer
More generally, what are your predictions for the Spanish property market in 2011?
I think we will see a modest improvement in the number of transactions as the bargain properties are hovered up.
The conditions that have caused the crisis in Spain are not going away:
- Massive unemployment
- Bank repossessions
- A huge glut of property on the market
- The global financial crisis and property crisis continues to exert a downward pressure on prices.
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