Selling your property became more difficult in 2015, according to data released by online property portal Fotocasa.
Owners who had a property for sale in 2015 found they had to reduce the original asking price by an average of 14% in order to sell. This is the equivalent of 33,400 Euros, one percentage point below the previous year. Fotocasa reported that the 14% decrease was the slightest reduction required to sell over the last six years, and indicates a continuing recovery in the property market.
On average, 36% of owners who put their property on the market were able to close the deal, an increase over 2014 when only 28% of owners managed to sell. On average it took 10.6 months to sell a property, one month shorter than in 2014 when it took an average of 11.5 months.
In 2015, 44% managed to sell their property in under six months, while 25% needed between seven and 12 months to sell. A further 16% took between 13 and 24 months while 15% took over two years to complete a sale.
Beatriz Toribio from Fotocasa, said “The housing market has not yet recovered, but has been reactivated and therefore is more dynamic than in the worst years of the crisis. In 2015 those who managed to sell their property took less time to complete and applied a lower discount. But to sell, you need to lower the price: 81% of the owners who sold a property in 2015 had to do this,”.
Type of Residence
Of the sellers surveyed for the report, 46% said the property they sold was their main residence, followed by those selling a second home (22%), while a further 18% said the property sold had been inherited.
By types of property 52% were flats and 19% were houses. Apartments made up 7%, with 4% being duplex properties, and 4% penthouses.
Price Reductions Don’t Guarantee a Sale
According to the data, 64% of properties for sale in 2015 failed to sell, despite an average time on sale of 14 months. Of those that didn’t sell, 66% said they had applied a discount to the asking price with an average discount of 14% of the asking price. This translates into 32,797 Euros but this was not a guarantee that the property would sell.
Toribio explained that “The price is one of the factors that influence the purchase of a house, but also the location, distribution, quality and housing characteristics. Not everything is sold,”.
Despite the findings the survey also showed that there is still some resistance to reducing prices with 52% of owners who did not manage to sell said they had not applied a discount and were not willing to do so.
“For the first time during a study we found owners who, despite not selling, are reluctant to lower the asking price, which is very surprising after all that has happened in the housing market,” added Toribio.
How to Sell?
The data also shows that more people are turning to Spanish real-estate agents in order to market and ultimately sell their property. 68% of people who sold their property in 2015 did so through an agent.
Sellers citied the main reasons for using agents rather than selling privately as being the quality of potential buyers (43%), convenience (24%), and avoiding red-tape (16%).
You can read the full report here.