The professor of Economics at the Bangor Business School (United Kingdom), Santiago Carbó, estimates that in spite of the adjustment in housing prices, there are still several years to go to reduce the supply and achieve the balance, according to the newspaper El Mundo.
He considers that there are two different markets, one of the Madrid Valencia and Barcelona city property where it is difficult to find important discounts and where the prices begin to climb, the other encompasses the housing of the metropolitan or rural areas with excess supply. In his opinion, access to housing continues to be limited by unemployment, the lack of credit and low salaries.
In the professor’s opinion, in 2015 the adjustment in housing prices will reach 45-50% on average since the peak. “Although the fall in prices accelerated during 2012 and 2013, it is possible that this journey towards the bottom will prolong itself, like a slow agonising pain, amongst other things, because a futile change can be produced in the expectations that lead to a growing resistance from the sellers to sell at reduced prices.
According to Carbó, the resistance from sellers through waiting to sell is due to them interpreting that the arrival of foreign investors could raise the prices. However, he believes that this “is far from being how it is” because foreign investors buy houses in prime areas or real estate packages at reduced prices, this is to say, different typologies to that which can interest the average person.
Carbó points out that although the prices continue to adjust themselves there will still be some years until the balance is achieved, “as it will still be needed to reduce the existing supply”. Another reflection that he makes is that many families still have not access to the property ladder , with which he believes that “they ought to look for more active renting and social housing policies for collective persons”