Resale Home Prices Are On The Rise.
Thanks to this wonderful part of Spain we live in, La Comunidad Valenciana has registered a resale house price increase of 1.3% in the month of July. Prices have risen in seven of the seventeen communities, however the biggest drop was recorded in four provinces, one being our closest neighbours in Murcia, which fell behind at -1%. Alicante province had a registered price increase of 1.7%.
General price per square metre in Spain as a whole, is €1,530 after suffering a decline of 0.1%.
The Bank of Spain have confirmed the Euribor has fallen in July to an average rate of less than 0.056% from 0.028% in June. Making it six consecutive months of negative rates and recorded a fall of 0,223 points from 1.167% of which the Euribor marked in July 2015.
Meaning, an average mortgage of €100,000 with a repayment term of 25 years, which is reviewed in August, will be reduced by about €10.14 per month or approximately €121.68 per year.
Although these figures may not mean much to many homeowners or investors, it does mean that our area is still going strong, and with the Spanish banks offering great deals on Mortgages I’m sure any savvy property buyer should snap up these deals before they start to disappear.
More facts and figures: 73.5% of the Valencian residents live in their own purchased home with 16.9% in rented accommodation. 30.4% live in the same municipality as where they were born with 9.6% living outside of Spain. On average the Valencian’s live approximately 246kms from where they were born and have a 50km journey to and from their place of work. A lucky 49.6% have never changed where they reside due to their job.
Even amongst Spanish nationals, 78.8% believe that owning a property instead of renting will always remain the best plan for their future.
When property become scarce, we will all see asking prices go up. Like anything else, it’s all down to supply and demand. If people demand it, buyers want more of it!