Pound hits new high as Spanish market looks to have bottomed out04/12/2013
Is the British overseas property market about to turn a corner? I’m not usually an optimist but the signs look good for 2014.
The three biggest drivers of market growth appear to be coinciding for the first time since the heady days of the boom.
UK house prices, particularly in the South of England are skyrocketing providing the potential for equity release and a feel good factor.
The pound hit 1.21 against the euro yesterday, it’s highest since January. A way off the 1.52 it hit in 2007, just before the crash, but a rising pound helps agents close British buyers by locking in perceived currency gains.
Finally, the Spanish property market shows signs of bottoming out. The headlines in El Pais this week reported on a speech by Alfonso Galobart, head of CBRE Spain who’s quoted as saying the “Spanish housing market has touched bottom”.
According to Registrars house price index, average Spanish house prices rose in Q3 for the first time in five years. It’s unclear whether this is a long term trend or just a blip but the signs are encouraging.
Spain is the biggest seller market for overseas property and when Spain recovers so will the industry. The missing ingredient is the fear of loss caused by rising Spanish property prices.
If history teaches us anything, it’s that people’s memories are short. Fear and greed drive all markets and the time to work in our industry is a short window when greed is working its magic. Ironically this is really the time we need to be worried.
It may not be 2014 and it maybe short lived but there’s a pay day ahead for those who looked after their clients and businesses through the bad times.
Comments are closed.