Skip to main content

Costa's Housing Market Hits a Bumpy Road as Sales Plummet for the Third Consecutive Month

Hold on to your teacups and prepare for a tale of financial shenanigans! The real estate market in Malaga province has taken a wild turn, leaving potential buyers and sellers in a state of bewilderment. It seems that the Euribor, that sneaky interest rate that determines mortgage costs, has decided to do some fancy footwork, causing prices to skyrocket and sales contracts to dwindle like a soggy biscuit.

If we peek behind the curtain of statistics, we discover that the first quarter of 2023 has been nothing short of a rollercoaster ride. Sales have taken a nosedive, plummeting faster than a bumbling bird with no wings. For three consecutive months, the numbers have been in freefall, accompanied by a chorus of mortgage applications whispering their sad goodbyes.

The experts are pointing fingers at the mischievous Euribor and the sly rise in house prices for this topsy-turvy market. January, February, and March witnessed a gloomy decline in property transfers and mortgage loans. It's as if the housing market has caught a chill and is reaching for a blanket to huddle under. According to a report from Spain's national statistics institute (INE), January suffered a drop of 12.5%, February a slip of 5.8%, and poor March plummeted by a whopping 16.4%.

If we add up the numbers for the first quarter, we find that a staggering 9,314 homes have found new owners in the province. But alas, this figure pales in comparison to the same period last year, showcasing a heart-breaking decrease of 1,619 homes, equivalent to a 14.8% decline. It seems the Malaga province is feeling the brunt of this housing market shakedown more acutely than the rest of the country, which only witnessed a modest dip of 2.5%.

But hold onto your quaint cottage hats, my dear readers, for the chill in the air affects both new and second-hand housing. In the realm of new construction, sales have taken a nosedive of epic proportions, slumping by a mind-boggling 29% in Malaga province. Meanwhile, the second-hand housing market has been slightly less disastrous, with a decline of 10.4%. It's as if even the houses themselves have decided to join in on this topsy-turvy dance.

"The forecasts are coming true, my friends, and the market is taking a breather," exclaimed Ferran Font, the director of studies at the real estate portal Font believes that the future of the market depends on a curious ensemble of factors: the rise of inflation, the whims of the European Central Bank's interest rate policy, the possible leaps and bounds of the Euribor, and, of course, the enigmatic new Housing Law that has everyone scratching their heads in uncertainty.

Oh, but do remember, my jolly comrades, that not too long ago, the Euribor was frolicking in negative territory, twirling its figurative moustache in delight. And now, oh dear, it teeters precariously close to 4%, a number that sends shivers down the spines of potential homeowners. This sharp rise in the mortgage interest rate (which, incidentally, serves as the reference for most mortgages in Spain) coincides with a rather inconvenient truth. While prices have soared to dizzying heights, wages have failed to keep up, leaving poor households clutching their purse strings with a look of despair.

You see, the meagre 2.78% rise in wages agreed upon in collective agreements until December 2022 simply pales in comparison to the rambunctious average inflation rate of 8.4% for the same year. It's as if the housing gods have conspired against us, unleashing a cruel prank that has left the people scratching their heads and wondering if they'll ever afford a cosy abode.

So, my friends, as we bid adieu to the first quarter of this tumultuous year, let us brace ourselves for further twists and turns in this housing market saga. Will the Euribor continue its dance of mischief? Will prices stabilize or continue their gravity-defying act? Only time will tell, as we hold our breath and hope for a pinch of luck in this whimsical world of real estate.


Popular posts from this blog

Estepona Sun Kisses Presenter’s Cheek with Warm, Spotlight Embrace!

With the sun casting its radiant, daily spotlight overhead, Estepona rolls out its golden sands as a welcome mat, beckoning “A Place in the Sun” celeb, Jasmine Harman, and her delightful troop - husband and kiddos included - into its warm embrace for a delightful act titled: New Beginnings. Jasmine, no stranger to the tantalizing dance between dwellings and dreamers with her two-decade waltz on Channel 4, has been the fairy god-presenter, sprinkling home-finding magic dust from Portugal to Malta to Cyprus. Yet, after years of orchestrating homey happily-ever-afters, she’s chosen to pen her own, right in the heart of sun-soaked Estepona. “It was a canvas of years in the painting,” Jasmine confided in Hello! Magazine with a smile akin to one indulging in a delightful secret. “With each year gently nudging us towards craving more moments stitched together with family laughter and wrapped in quality time. And thus, with a dash of courage and a sprinkle of adventure, our decision bloomed, o

"Spain and England's World Cup Waltz: The Pinnacle Plays of the Pitch!"

 "La Roja and the Lionesses set for a Down Under Duel in Sydney! Prepare for a football fiesta as Spain's La Roja squares off against England's Lionesses at the iconic Stadium Australia this sunny Sunday, 20 August. The stakes? Just the little matter of the Women's World Cup title. For both teams, it's uncharted territory. They've danced around the finals before, but never quite made it to the last tango. Spain's road to the finals was nothing short of a nail-biter. With a thrilling 2-1 victory over Sweden, where the scoreboard remained dormant until the last 10 minutes, La Roja proved they love a little late-game drama. As for the Lionesses, they showed their mettle by taming the co-hosts, Australia, with a captivating 3-1 win. Now, with the world watching, both squads are on the prowl, each looking to pounce and claim their first-ever Women's World Cup crown. May the best team win (and the fans get to enjoy some fantastic football)!"

Marbella's Shoreline Set for a 'Sand-sational' Upgrade!

With a 'can-do' spirit that would make a sand castle builder proud, the Marbella town hall is steering a beach revitalisation project right off the pages of a fairy tale. Like a magnificent sand migration, the process kicked off at Las Chapas-Alicate and will sweep through Casablanca, La Fontanilla, and San Pedro Alcántara.  Mayor Ángeles Muñoz let slip that a mountainous 120,000 cubic metres of sand would be borrowed from the town hall’s own treasure chest to finance this sandy renaissance. "The central government seems content playing in the shallow end, leaving us to dive deep for a definitive coastline stabilisation solution," Mayor Muñoz said, clearly not one to bury her head in the sand. In a stroke of midnight genius, the work is taking place under the cloak of darkness - from midnight until 8am - sparing sun-seekers and local business the sight of bulldozers invading their tranquil beaches. Mayor Muñoz confessed that the project couldn't have hit the groun