CoVid Market 2020
2020 got off to bit of a slow start at the beginning of the year, although it always tends to.
Then we settled back into the fast lane until…
Thwarted by the CoVid19, Corona Virus world health emergency and economical crisis mid March.
As I write this, I’m working at home and as you can imagine we’re shut to the public after Spain declared national alarm status and we can no longer do home valuations or visits with potential clients.
This will slow the market down for sure. It will probably even show signs of dropping, as it has done already across other trading markets.
A market drop, hopefully to be short lived, and recovered quickly.
We’ll pick up on this market overview once this CoVid19 is beaten and we’re back on track…
Time of writing this 27/04/2020
Slow down in 2019
The real estate market overview in 2019, was heavily influenced by the Tinsa group. A Spanish company leading in property valuations, analysis and real estate advice in Spain.
Tinsa foresaw an increase in house prices of approximately 5-7% – Yay!
But hold on, this was a generalised prediction for the whole of Spain. Different areas of Spain generate their own levels of increase and on hearing the good news, this was overlooked.
So, for example prices wouldn’t rise as much in a relatively small tourist resort, than it would in a major city like Barcelona or Madrid, and even less so in rural areas with few inhabitants.
What Vicens Ash Properties saw during the real estate market in 2019, was that prices were still increasing.
Despite market movement slowing down in comparison to the previous two years.
Market increase 2015
Despite the real estate market having shown green shoots of recovery in 2015 with house prices on the up and less bank product flooding the market, what didn’t help at the time was the European press.
Across Europe, the press pushed the fact that Spanish house prices were ‘Crisis Prices’.
Making prospect buyers think they’d arrive in Spain and bag a property in excess of 20% off the advertised price.
The press was right in saying Spanish houses prices were at their lowest point in 15 years. Although the property for sale then, had been valued and pitched for that market.
However, Europeans, especially French and Belgians, flooded to Spain to take advantage of the situation and still tried it on.
In effect, kicking home owners whilst they were already down on their knees, after having to sell in the lowest real estate market seen for over a decade!
Following this, buyers stopped being so offensive and the real estate market steadily increased and the construction sector reignited itself as well.
Market relief 2013
Was a time of total relief and gleefully welcomed with open arms, after the housing market and world economics suffered such a colossal recession.
The big black cloud hanging over all (real estate) business; finally started to blow over come 2013-14.
And, stagnant property at last began to generate interest but in doing so; it also sparked heavy competition with the banks.
Whom needed to off-load huge portfolios of repossessed homes, which made the bank direct opposition to home owners and real estate agents alike.
Market fallout 2008
The Spanish real estate bubble burst massively in 2008 and steadily decreased around 35% in the Javea region.
In hindsight, we were lucky not to have suffered as much as other regions like Torrevieja or Murcia, who suffered a market drop from 55% plus.
So, Javea and its surrounding coastal resort towns did ‘quite well’ during the slump, considering the damage caused in other areas.
Proving just how exclusive this part of the Costa Blanca is.
‘For sale’ signs where everywhere. Employment plummeted. Rental properties became available for reasonable rates for the first time in ages, but even so; no-one could afford to rent.
It was fashionable for banks to close or merge and mortgages became a thing of the past – everyone, everywhere talked about the suffering the crisis was causing.
Good times were well and truly in the past and the real estate market was on it knees.