Property prices in Carvoeiro down!!!!!!!!! ????

[BONDI]

I have noticed from the prices being asked for properties in and around Carvoeiro are significantly down on last year, especially compared to other areas in the algarve.On average i see they are down by some 25% year on year. I am basing this by looking and comparing the prices asked my estate agents in and around carvoeiro, and speaking with few estate agents in carvoero.

Any comments on why this may be so? Besides the credit crunch being the reason.

Bondi

[kteee]

I think the credit crunch is the reason - prices are down just about everywhere, why should Carvoeiro be any different?

[BONDI]

Ktee

Thanks for your views, i agree generally the prices are down everywhere due to crdit crunch but i just wondered as to the gap in percentage drop in the prices i have been looking in the areas like armacao, albufeira, praia da rocha, vilamoura etc, it seems for some reason there is a bit larger drop in prices around carvoeiro? may be i am wrong in my assumption, it is just my observation comparing the drop in relation to different areas.

Bondi

[e-richard]

Bondi, I suspect that you may be comparing asking prices for properties which in 2007/8 were somewhat overpriced (in CVO ??)

Like you, I have no statistically sound evidence, but got a feeling that there were many sellers optimistically looking for 20%+ per annum growth in that period. And they probably failed to find buyers. When looking at property price change, you have to look at sale price, not asking price .

But like Kteee I also don't see why CVO is materially different from anywhere else in the Algarve

[SJ & RE]

We saw a lovely apt for sale last year in Silves, price we thought pretty ok.On looking on the realestate website we noticed it was still for sale.Price unchanged

[BONDI]

erichard

Many thanks for your views, i much appreciate your analysis. I am just comparing the ASKING PRICES for properties in and around carvoeiro now, in comparison to other areas. You are probably right that the prices were over priced along last 2 years, and now are being marketed at realistic prices. And being a BUYERS MARKET now, i suspect the buyers will probabaly offer even LESS than asking price which as you say has probably been repriced to more relistic levels.

Lets hope things improve, and especially now POUND is expected to hit 1.25 euros to a pound by september this may attract some british buyers to lovely CVO.

Baggysallyjane:Your observation is exactly what i have noticed that in other areas the askign prices are still the same on last year.

Bondi

[cereza]

Hi Bondi
I too have noticed the sharper reduction in asking prices in CVO when compared to other areas but as said above this is probably mainly due to exagerated increases a few years ago. From converstaions with some agents that I know it seems that the only sales lately are by desperate sellers accepting extremely low bids from speculative buyers.
Due to the lack of finance availability the market is pretty stagnant and there is a dearth of buyers with the confidence to buy anything. Many sellers who are not desperate have just maintained their sales price even though they know that the level is unrealistic now. With interest rates unlikely to go down further and even talk of increases in the next 6 to 9 months there is little reason to expect any change in the current situation and any recovery in market activity cannot be expected for another year or so at least in my opinion. Until the UK property market starts to recover the Algarve market will remain depressed.
One of the few chinks of light that I have seen was a report in The Resident that Angelie Jolie was looking to buy in the Algarve - with her rainbow familly who knows what her arrival would mean??

[BONDI]

Hi Cereza

I think you are SPOT ON with your views and future prediction about the state of property market generally. I gather the Portuguese banks who were previously more forth coming with lending are getting very choosey, and also asking for 30% deposit in comparison to 5-10% they used to acccept before.And i also find that banks are Valuing the properties at much lower prices now (realistic).

Much appreciate your input.

Bondi

[Al Garb]

http://www.globalpropertyguide.com/Euro ... ce-History

[BONDI]

Al Garbe

thanks a lot for very intersting breakdown and statistics of house prices in portugal along the last few years.

Bodi

[Bruce Wallis]

Everything is relative.
The Algarve has always majored more on exclusivity than the Costas. Prices, and subsequent returns have always been seen as a better 10 year investment in the Algarve.

Yes prices are down....they are everywhere. Are we faring worse than , say Spain? No we are not. Parts of Spain are almost in meltdown. We arent!

If you sell your property in a slump or recession as now, you will probably suffer the consequences of doing so.

It is a shame about the failures in the Estate agency markets, but maybe that was partly self inflitced......they certainly enjoyed the benefits of the good times. A sensible business plan is enabling the prudent businesses to weather the storm, and there will be good times ahead once the green shoots start to sprout.

2 years ago the Daily Telegraph rated the Algarve as in the top 3 of property investments in europe over 10 years. i shall look at the situation in 5 years time to decide whether we made a sound investment.
Currently we have no reason to doubt the wisdom of that investment, because as a distinct benefit we get to own a villa in what we see as the loveliest spot in europe, and get to visit that investment, and it's spinoffs several times a year.

[SJ & RE]

Very astute dear boy

[EMM]

Up or down we are still encouraged to see a virtually identical villa to ours for sale for E150K more than we paid for ours 2 years ago.
( And the £ was worth a lot more then )
Ok so they may not get what its advertised for but it does indicate that overall its still a good investment area.

[Gary/Gaynor]

I think the reality is when we eventually arrive at the new norm economy wise it will not be the same as the old norm but a few percentage points lower. The same applies for most of the world. People rushing out buying second properties abroad or where ever will be something you can tell your grandchildren about and they most likely wont believe you. This is a world changing event but I would say many cannot or do not want to see this which is fine we will all eventually get used to the new norm and then it wont seem so bad. House prices around the World still have a long way to go down which may take years and years. Hopefully most have bought in the Algarve because they love the place if its just for investment purposes I feel you may end up disappointed. Anyway we should all be cheerful Gordon Brown has said he is investing in all our futures.

Gary

PS I would like to shoot the next person that mentions green shoots unless of course your colour blind

[SJ & RE]

Planting seeds, oops not farming anymore