4/07/2014 – El Confidencial
It is estimated that there are currently 1.7 million houses on sale in Spain. Both used and new ones, proceeding from recently built housing developments, repossessed and inherited. The latter enlarged the stock by 138.428 units in 2013, more than the foreclosed and finished property altogether (124.085 units).
The data has been provided by advisor RR de Acuña y Asociados who demonstrate the variable is going to affect the future stock absorption in Spain: “All depends on demography”, states the firm´s director Fernando Rodríguez de Acuña Martínez. True, Spain is inclined towards ownership and as soon as the owners start to decease, the houses will fall in hands of hiers and the most likely, they will return to the market.
The staggeringly numerous and varied product directly competes with the REO property and the new developer real estate sales.
Moreover, these houses offer much lower prices. “They are bargains in comparison to other units on sale. (…) Selling your own house you seek the higest price. When it is not yours you, simply don´t mind this much and if you need money, you are eager to cut it even more”.
The phenomenon is impossible to control. This is the most stable indicator, proven to be indifferent to the real estate bubble burst. Inherited house percentage hardly registers fluctations and will not show them in the immediate future.
In 2013, net home number post 91.000, while inherited houses reached a 138.000 unit score. The figures explain why in some regions the stock in excess disappears so slowly.
“The problem won´t be bothering Madrid or Barcelona where the markets wake up. But in some areas, the stock might never diminish because there is neither market nor demand for them”, says Rodriguez.
Original article: El Confidencial (by Elena Sanz)
Translation: AURA REE