Real Estate Market in Sotogrande in Pause!
If you are selling, or buying or looking for a home, you are not the only one with many doubts. In this blog we analyze the results of a survey carried out by Mark Stücklin for Spanish Property Insight.
The enacted movement measures, the slump in the financial market, and uncertainty about future earnings, all due to the coronavirus pandemic, have naturally altered plans to buy and sell real estate.
The real estate activity in Sotogrande has completely stopped. We are on PAUSE!
Social distancing restrictions are making it difficult for people who require writing a sale to meet in a room, but it is working. Also, with some municipal buildings closed, it may not be possible to register a sale. At the moment it is fine, but if the situation escalates, where appraisers, lawyers, banks and notaries cannot work within the rules, it could be even more complicated.
Customers are very nervous and do not want to submit offers. Those who sell also wonder if they should. The natural Easter market, as we know it, did not happen. We already know that the quarantine will continue until at least April 26. We have seen offers suddenly withdrawn and other clients who were ready to bid have left.
However, we recommend not removing your property from the market. Now more than ever, people have time to search for houses. Fewer distractions while trapped at home.
1. Sample – Total 607.
- Buyer-177- 29%
- Sellers-71- 12%
- Owners 199- 33%
- Industry professionals -137 – 23%
- Real estate investors -14 – 2%
- Other – 9 – 1%
2. How long will the market be frozen?
- 88% believe more than three months. – This would lead to a worse situation than 2008-2010.
3. What will happen to the prices?
- 57% think that prices will fall a lot.
- 37% say prices will drop a bit.
- 6% say there is no impact
4. What will be the impact on foreign demand?
- One or two years 75%
- Few months 17%
- Permanent 7%
5. What will buyers do?
- 52% will wait for prices to drop.
- 20% will proceed with purchase plans
- 26% will wait until the situation is clarified.
- 6% will never buy.
6. What will the sellers do?
- 41% unchanged
- 16% will lower prices and look for a buyer.
- 43% will take their properties from the market. Of which 5% will be permanently!
If you need assessment with your property or have questions on the real estate market, contact us.
Noll Sotogrande Real Estate.
Stephanie Noll: +34 607 465 383
Charles Gubbins: +34 607 911 661
This summary does not necessarily reflect the views of Mark Stücklin, Spanish Property Insight or their owners.
›› ? Please also read: The New Normal – Sotogrande place for principal residence!
›› ? Sotogrande Businesses Continuity Plan: A must do, even for a small estate agency like Noll Sotogrande!
