Property prices

The economic downturns worldwide are almost certain to impact property prices adversely . I think people will either have less available cash or less inclination to make large investments overseas / make life changing moves. From what I saw last year when looking for property there is no shortage available for sale so it will not take much to depress prices. 

Thanks Ian. Nice to hear your thoughts.

We are not looking to move to Spain for about 5 years all being well however if the right property come up at the right price we may be prepared to do it earlier and use as a holiday home.

We have seen this question pop up a few times now , we live locally to Mojacer and we own in Palomares , being that Spain was recovering well to the last crisis of 2008 , Spanish property was at an all time low , mainly from bank owned property (that doesn’t mean repossessed , as that’s a different thing . And it was the banks that had to release as much stock as possible at very low prices to pay back debts ( won’t go into that too much ) 

But as the stock deteriorated less n less choice has been offered in these bank owned therefore there’s still a few ones available , will it cause a crash though , I severely doubt it as it’s at lowest and people will hold on rather than sell . 

Not to say there’s not a deal to be had but I suspect it will come from a bank . 

The Question Asked:- Will the price of property be affected by Covid-19?

The Simple Answer:- Yes.

2006:- Price of property in coastal Spain reached it zenith which was much above what the property was worth.

2008:- Banks in Spain, UK, Ireland etc had extended themselves giving out loans many of which had no chance of being repaid. Consequently, the price of property crashed to much below what the property was worth.

2019:- Property prices had not recovered and at the glacial pace most coastal property prices increased. Brexit became a reality and there was a demand for some property for Brits jumping ship. Prices remained stagnant, but in certain types increased.

2020:- Almost Imminent Brexit and Covid-19 combine to adversely affect the price of property. But, the extent of this is not yet known, but it would be folly to expect the price of property to increase. I reckon there will be a reduction in price.

Property Bargains:- There was always such in Costa Almeria and this will continue.

I would like to put these thoughts forward.

Due to the current state of alarm, many people were forced to work from home. From this people and companies have seen this as a viable proposition going forward. There have being people approaching estate agents saying because they now can do their job from home, there is no longer a need to live in the big cities in order to be close to work.

This could lead to an increase interest in people looking to buy homes on the coast / less crowded areas.

Also, if you think about the fact that densely populated areas saw a bigger incidences of the virus and more likely to have a second wave. This could lead to a move away from large urban areas to more rural areas.

It would follow that our property values might go up where as Madrid's might stagnate. Our area had one of the lowest incidences of the virus hence one could surmise that we might become a very popular region.

Thanks everyone it’s great to hear different options and very helpful.

regards

jenny 

Um it's  a thought that's been  put forward in the UK as well everyone running for the country side. 

The world is set to descend into the mother of all recessions and of course property in Spain will fall again. 

If you've got cash enough to buy then just monitor the prices month by month and pounce when you find something at a good price.

This pandemic is going to force many businesses into receivership and that will spread out to the citizens who have lost their job. Add to this America seems to be heading for a disaster twice as bad as the rest of the world and you can virtually guarantee we will have a two or three year depression. 

Politically too we seem cursed by having poor leadership in many places. BoJo seems to have started OK but he might be overwhelmed with the aftermath of this era. But lets hope not.

Anyhow, don't expect a quick recovery. Expect a rally then a dive and a soggy wet slow long bounce that might take three years. But those with reserves and cash - its a buyers market.

SkySword many thanks for your views and enjoyed your points.

We will indeed keep monitoring the market and will hopefully be able to visit soon.

jenny