If you're looking for property in Spain, now is the time to begin looking for that vacation, retirement, or permanent dwelling, as there are an abundance of properties on the market. It is estimated that there are approximately 1 million properties for sale in the Spanish market and prices are expected to continue falling this year.
Though this is not good news for sellers or developers, it most certainly is good news for buyers. Ideal locations such as Madrid and the Balearic region offer plenty of beautiful homes at affordable prices.
According to Spain's National Institute of Statistics home prices are decreasing with residential properties falling 2.2 percent in 2010's third quarter when compared to figures from 2009. Additionally, the prices of new properties and re-sales are also decreasing. Figures show a 2.6 and 1.8 percent decrease year on year.
It seems that sellers have become more realistic in pricing their homes with the economic crisis that the world has been fighting. Many simply want their homes to sell quickly and are willing to negotiate the price.
One of the most significant drops in prices was in Cantabria, with a 6.7 percent drop. The Canary Islands were down 2.9 percent, Andalucia 2.2 percent, and the Balearics faced a 2 percent drop. Despite the drops, a bright spot for sellers was found in Madrid where prices rose 0.9 percent in the third quarter of 2010.
Experts predict that home prices in Spain may continue to drop for another two years, which has many local and overseas investors keeping an eye on the country and many have gone ahead and made some key investments in the market already.