Posted by
Mr. Tom on 11 March 2011 | Filed under
Property
It seems that the global economy that has happened in the past two months and it seems that we see the first signs of improvement in signals that the recession begins to sink. The Organization for Economic Cooperation and Development (OECD) suggested that “the first signs of at least a pause in the economic crisis” in some countries – the United Kingdom, France, Italy and China. Jean-Claude Trichet, President of the European Central Bank said recently that “slowing the decline in GDP” and went on to note that some countries have already declared that a pick-up. There are also signs that housing market in the UK is accelerating a bit with mortgage approvals rose slightly and the inspectors of the information more and more interested in the property. Global stock markets recovered significantly from their lows in March.
All this is good news, but our position is nearly identical in terms of overall world economic situation and property in Mallorca. In other words, it’s actually a slow decline of the main economic indicators in some countries. And this could be a sign that the recession to find a point from the lowest level. We do not however believe that there is no quick recovery or significant, except maybe go on the stock markets of the dealers listed strengthened substantially against what remains of crucial economic data and business performance.
In addition, some real economic fundamentals and the things in Germany and other counties to solve, not far from satisfied. The unemployment rate could reach 9% in the United Kingdom, 10% USA and 20% in Spain later this year. This will undoubtedly have a negative effect on consumption and real estate market in these countries. In addition, these signs of recovery have not seen in a small number of large economies like the U.S., Germany and Japan. In many developing countries also continued to aggravate the situation.
In this sense, we believe it is too soon to know about the end of the recession, or even that it reached its lowest end. We could see back a return to modest growth in some countries in 2010, but it will take longer, perhaps much longer taken for activity before 2007. Besides all this, there are still major worries about the financial health of some of the largest economies in the world. And stimulate the global impact of the huge amounts of money into their economies are injected is still unknown. The IMF warned that there could be another 3 billion dollars in losses for the entire financial sector before the crisis is over.
Forecast for Mallorca property market
As mentioned above, there are many good reasons to believe that there is no significant increase in markets for goods in any country, even the strongest such as Majorca, during this year and probably the first half of 2010 as well. At the head of global macro-economic considerations specific to the Spanish property market, and pressure on prices has exerted throughout the region. They are presented in the above article. However, it is also clear that the activity was restored, and that sales made at a relatively low level. There are several positive factors that contribute to it.
Interest rates are lower in the euro than they were even
The European Central Bank cut interest rates recently to 1.00%, its lowest level since the creation of the single currency. It is possible that the rate drop even further later this year. Although it is likely that all donors will be sent, any reduction in the rate of consumption is positive and will stimulate the market to some extent. In Mallorca we find buyers have loans from 50% to protect against fluctuations in major currencies. Bravo investors seek higher percentage of loans in sterling against the € € base improves and thus pay back the loan and the conversion of most of his right to a later date will be in their favor.
In general, our prediction that the average property prices in Mallorca are reduced further by the end of this year, can continue in the first half of 2010. Although this reduction is as high as in other parts of Spain (10% predicted that this year and 12% next year by analysts at BBVA – one of the leading banks in Spain). The fact that buyers are active in the market square in Mallorca area outside the most. And there are (see define “green shoots” section above), many other reasons, robust Mallorca, apart from other parts of mainland Spain and the Spanish islands, and most other international property markets as well. But is observed once a horse, not too much on market data and statistical analysis. This is due to large differences in the actual sales price above and below the average market price in this unusual environment. The reason for this situation is that the seller is a powerful factor in a market environment, “normal” and what is not strictly related to the usual determinants of the value of a property.
It is, therefore, that some operations are done in the price level is unlikely that the improvement in average prices to go down. For illustration, see this selection of properties in Majorca, which were listed at a discount or asking price down. If you read this, because you might be interested in purchasing a property in Mallorca, our advice is to continually monitor opportunities. You can see the property now and to be able to obtain an unbeatable price. It is not easy but the best opportunities to identify, because all the owners are lowering prices, but can negotiate when it comes to major bids.