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Green Shoots in Property Market

Currencies Direct April 9th 2009 - 2 minute read

The green shoots of spring are becoming increasingly evident in the property market after a quiet economic winter. Sales activity in the Tenerife South micro-market is picking up pace, continuing a trend that tentatively started in January, according to statistics from Tenerife Property Shop. Signs of recovery in property are not restricted to Tenerife, as markets over the world start report increasing confidence.

Activity at the moment is still centred around the bottom of the market, with over 70% of sales in the sub EUR150,000 sector, but there are signs that the trend is moving up the price scale. In both January and February, closer to 80% of all sales were in this bottom price bracket.

Enquiries…

Enquiries have been rising month on month, with a steep rises in demand for EUR800,000 plus homes, as affluent purchasers identify that market prices appear to have hit bottom.

 The recovery of property demand is not a phenomena restricted to the island. Tenerife Property Shop, who retain a network of partner agents throughout the world, report that optimism is starting to appear across the board.

The press…

Even the press, who many people blame for the crisis of confidence, are starting to pick up on the changes. The Economist (3rd April) writes that homes have reached their fair prices if rent prices are taken into account, even saying that we are seeing the first indications that the end of the recession may be in sight. The Guardian in the UK (31st March) notes that in February 37,937 new mortgages were approved, 19% more compared to the previous month in the UK -the highest value reached since may 2008 and in march there was an increase in real estate prices.

The news is good…

The news is good for both buyers and property owners. Increased availability of mortgage funds is one of the drivers, but the real issue is the gradual return of confidence. Despite the positive signs Mary Spencer, a Director of Tenerife Property Shop advises caution, “Clearly, from a buyer’s point of view, the time of easy pickings and bargains is drawing to a close but we will still have to wait some time until all sectors of the market see sustained demand. Owners who are selling their property can see some positive news, but should certainly remain cautious and price their properties competitively.”

Information courtesy of www.tenerifepropertyshop.com

Written by
Currencies Direct

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