subject: The State of the Moraira Market - October 2009 [print this page] The State of the Moraira Market - October 2009
WELL, THE BUYER MOMENTUM which began here last September has continued and has blown away any chance of a period of summer respite and relaxation at CBS H.Q!
Unable to enjoy the beach, pool and siesta lifestyle, with which we entice our clients, Linda and I remain tied to our desks when not out viewing with visiting clients. As repeatedly forecast in this venerable journal over the past months, the local market here continues to harden. Most of the 'must sell' category of vendors have either sold or fled Spain and dumped their property back with their banks. No doubt they will return to the UK crying foul; alas, too many Brits had poured into the area, overstretching their borrowing and trying to make a success of businesses when success had historically eluded them in the UK. Why did they believe it would be so easy in Spain? There certainly isn't the welfare support safety-net for foreigners here to match the UK; maybe that is why we can afford to develop the services and infrastructure here so much quicker than in dear ol'Blighty.
Not only is demand from UK and other northern European buyers gathering strength, a further measure of encouragement is the average value of our current enquiries - up from a purchase figure spread of 80,000-500,000 last summer, to a current spread of 120,000-1.5m! The biggest market dynamic locally is not only the sense of recovery felt by the buyers, but the fact that there is much more optimism amongst property vendors. No longer do they feel the need to succumb to the silly and rude offers that prevailed during the past year or so, their scent of market recovery is bringing about a far more resolute stance and, rather than accept a derogatory offer now, they feel there is much to be gained by holding out until later in the year. Remember, with the departure of the 'must sell' brigade, what we are left with are the 'would like to sell' vendors. Most of these have owned villas or lived here for many years, and will remember that the underlying resilience of our local market has always ensured a strong recovery bounce, and they now recognise the advent of this turn around.
Plus a change... Of course, there is plenty of excellent value still to be had, the current market still holds the regular mix of bargains and the hideously over-priced, and buyers together with their representatives and advisers, need to tip-toe through the minefield, seeking out best value from sound, non-defective and legal properties. Another factor supporting our market is the fact that well-funded buyers can still obtain around 75% mortgages at below 5% interest, and many of the properties recently sold by us achieved bank valuations in excess of our clients' purchase prices! We know of several property investment professionals with large shopping lists for the Moraira area, including one Egyptian investor looking to buy twenty villas at around 1.2m each! Now, dear reader, these chaps seem the type of folk whose judgement should be taken notice of!
