Housing Sales Rise in Andalusia.
Andalusia came second in sales increases for November according to the Spanish Institute for National Statistics. INE. This is because house prices are extremely inviting and it is a lovely place to live or come to for holidays. Property prices are still lower than what they should be. Take advantage now.
Winners and Losers
The Autonomous Communities that registered the greatest annual increases in the number of housing sales in November were Aragón (24.7%), Andalusia (24.3%) and Castilla–La Mancha (23.7%). In comparison, Extremadura (–9.7%), País Vasco (–1.3%) and Asturias (3.5%) registered the lowest annual rates in November.
GDP grew by 2.5% across Europe
In Europe the fourth quarter of 2017 shows GDP up by 0.6% in both the euro area and the EU28 up +2.7% and +2.6% respectively compared with the fourth quarter of 2016.
Seasonally adjusted GDP rose by 0.6% in both the euro area (EA19) and in the EU28 during the fourth quarter of 2017, compared with the previous quarter, according to a preliminary flash estimate published by Eurostat, the statistical office of the European Union.
In the third quarter of 2017, GDP had grown by 0.7% in both zones. Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 2.7% in the euro area and by 2.6% in the EU28 in the fourth quarter of 2017, after +2.8% in both zones in the previous quarter.
Over the whole year 2017, GDP grew by 2.5% in both zones.
GDP and Property Prices Rise
Residential property price indices (RPPIs) directly and indirectly influence economic policy.
From an individual household’s perspective, real estate often represents the single largest investment in their portfolio. It also accounts for the largest share of wealth in most nations’ balance sheets. We do not need to be told how changes in house prices can have far-reaching implications for individuals.
House prices influence home improvement and renovations expenditures and there are property bargains out there to buy and reform. Even some minor reforms can significantly increase the value of the property.
Understanding Supply and Demand
House prices also influence the decision to build new houses (the supply side) as well as the decision to become a homeowner (the demand side). Investors turn to house price indices to measure wealth and to help assess current and future rates of return.
From a broader perspective, analysts, policymakers, and financial institutions follow trends in house prices to expand their understanding of real estate and credit market conditions as well as to monitor the impact on economic activity, and financial stability and soundness. For instance, mortgage lenders will use information on house price inflation to gauge default risk. Central banks often rely on movements in house price indices to monitor households’ borrowing capacity and debt burden and their effects on aggregate consumption.
It is still a buyer’s market in property in Andalusia, but, to quote Bob Dylan, times they are a changing . . . which is great news for those owners trying to sell their properties.
For those looking to buy, invest now or spend more later.
For those looking to sell, it could be that your property is on the market at a price which undervalues it.
Get in touch with us to arrange a tour of properties or to get a valuation of your property with a view to selling it.
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