There are a lot of people that have properties for sale and try to deny the reality and they do not want to drop the prices of their properties.
This has been quite a trend in the last years in Spain. The prices of the properties on sale in Spain are decreasing and the owners just do not want to take the opportunity and sell them quick. Why is that?
The liberalization cycle of the real estate sector in Spain started at the beginning of 2006 and it was immediately followed by an intense real estate crisis known as the ¨real estate bubble¨.
Although we know the cycle started in 2006, we could easily admit that its first starting point was in the mid of the 70s, showing severe increase in the prices of the properties on sale.
In order to understand better the drop on the prices of the properties for sale during the last years in Spain, we must start from the 70s and begin with the process and its different phases. Among those phases we can find the liberalization of the real estate sector in Spain and the real estate crisis.
The owners of properties for sale in Spain must take into consideration the info above and reflect upon the intense decrease of prices up to 45% during the last few years. If the owner of a property wants to sell it, must take into consideration these historical facts, as the reality is the one that determines the prices of a property.
We all know that the price for each square meter both of brand new properties and resale is actually the key, though most of the times at the end of the selling process these numbers are not taken into consideration by the owners of properties and less by the buyers.
In the same time and considering it as another phase of the process presented above, the numbers show that by the end of 2013, Spain was getting out from 6 years of consecutive decrease of the prices on the properties for sale in Spain.
This extreme drop of prices of properties for sale in Spain has been noted especially on the resale properties, reaching a number up to 35% but had reached a stable point at the beginning of this year.
This has obviously marked a huge change in the real estate model but it showed also the necessity of the owners to think if they really wanted to sell their properties or not.
We know there are a lot of cases in which the properties won´t sell because of the problems the owners raise to the real estate and if the real estate market changes, we will confront a change of perspective in the thoughts of the owners who want to sell their properties.
The offer of properties for sale in Spain is higher than the demand.
The increase of the numbers in the properties for sale (both brand new and resale) in Spain has been surrealistic, although has decreased a little from last year. We must take into consideration that the indices marked a huge number of properties on sale last year.
There were 1 million resale properties on sale in Spain and the same number for brand new properties. When the real estate market has more than 2 million properties for sale it is obvious that there is a much more offer than demand of properties. There is no mystery in this and you do not need to be an economist to figure that out.
When the offer of properties for sale is so big, there is no space for speculations. The owners of properties on sale in Spain should understand that a potential client is an opportunity and this is not the time to frighten the clients.
If the owners of properties for sale are not aware of this, they must know the potential buyers of properties are updated with these practices and they take advantage of them when they want to negotiate the price.
We are talking here more about those foreign clients who are looking to buy properties in Spain and we know they are well aware of it, because the real estate crisis of Spain has passed the borders.
Why is this a good moment to buy properties in Spain? Well, it is because the reality shows it and the foreign buyer detects that buying properties in Spain for very low prices is actually a good opportunity.
Do the owners of properties for sale in Spain deny the reality?
It seems that the reality described above is not the same for the owners of properties for sale and there are people who do not think about it even when they are in the process of selling their properties.
Why do not the owners want to drop the prices? What are their reasons? What motives do they have that they do not lower the prices of their properties for sale? From where do they take their arguments?
The main arguments or reasons of the owners not to lower the prices are different and there are factors and factors that influence them on the moment of lowering the prices of their properties in Spain.
– They think they know the reality of the real estate market better than any expert and they believe those who sell their properties and lower the prices are making a big mistake.
– They wrongly consider their properties on sale are located in areas not touched by the real estate crisis in Spain.
– They strongly believe the properties must not be sold with a price below the buying one and they think they do a bad business.
– The majority of the properties on sale in Spain are with mortgage and this make the owners drop the prices when selling their properties.
– Many owners of properties on sale in Spain deny the selling of their properties, because according to them, ´they do not need to sell their property´.
Anyway, the owners of properties on sale in Spain must never wait for significant changes from the real estate after a short period of time. Moreover, they should never adopt a rash and impulsive attitude which will actually destroy the selling of their properties.
The reality of the actual real estate market is the consequence of a long process during time, which reflects different phases and cycles which will never have any effect in less time than its development.
The owners of properties on sale in Spain must leave aside speculations and try to search for better solutions in order to close the selling of their properties.
There are other variables and factors that particularly affect each and every owner and make them not drop their prices. Each person actions according to his personal necessities.