Barcelona house prices in theory are only falling by small amounts like 0.1% monthly. But these are based on asking prices, or what owners want their properties to sell for.
I’ve just posted on recurring thoughts (my other blog) about how a friend is simply going around bidding 25% below asking prices, and getting plenty of sellers agreeing to sell around 20% off.
20% off asking price! Wow. It wasn’t that long ago people would bid above asking price to buy a property.
Of course, this is just anecdotal. But when what people on the street actually transacting are telling you something that is radically different than what you read in the papers, it makes you think: what is the truth?
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Wow, that just shows how fragile prices are at the moment. I think the key is to look at affordability when it comes to making a purchase and don’t be seduced by any other factors.
Salaries in Spain are still low. Not so long ago I remember people demonstrating about how accomodation had priced itself out of a lot of people’s reach.
Having said that, I’m looking at properties in the Collserola – I’m in the Eixample now, and I rent a studio in the Jewish Quarter (long story – lack of space and a desire to paint). The combined saving on my flat and what I might get for the Eixample flat would still not be enough to rent a good property out there. As for buying… that’s another story.