The purchase and sale of flats in the Valencia Property 2020 crisis is highly affected by the Covid-19 from March in Spain.
The immediate and short term effect of the Covid-19 pandemic has greatly hampered Valencia property and real estate activities as at March 2020. It is due to the physical and face-to-face activity between buyers and sellers. This involves the commercial visit and inspection of properties, and the signature of the purchase-sale documents at the notary’s office. These have stopped completely due to the alarm state to avoid possible virus contagion.
Except in very rare and urgent cases (specially where there is a mortgage involved), in the Valencia Property 2020 april crisis there will be no signatures until at least mid-April. In other words, the purchase-sales in the Valencia property market will not be effective in the coming weeks, as has happened in the second half of March.
Everything has stopped suddenly as we explained a few days ago in this Valencia property 2020 covid post and the recovery process is expected to be slow after the state of alarm. But the restoration of a healthy and optimistic buying and selling rhythm after the Valencia Property 2020 crisis will be increasing in June.
The associated real estate agencies have admirably maintained their activity by teleworking, so we recommend working with a reputable agency of proven expertise.
Trends and Changes Expected In the 2020 Valencia Market:
1) THE CURRENT STOP
The current stop is expected to end in May at best with a rebound in buying and selling in the Valencia 2020 property market from the second half of May. There will be initial caution among investors working with the buy-to-let strategy because of the uncertainty of the current leasing policy about tenants who has difficulties to pay the rent.
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2) PRICE DROP IN 2020.
Given the fall in demand in recent weeks and pending an optimal recovery, the supply in Valencia property market will logically fall in price. Some predict that it will fall by 10% in the main cities of the country, as is the Spanish Association of Personal Shoppers (AEPSI).
3) HOW WILL THE PRICE DROP BE?
It will be at once, if the lesson of the 2008 financial Valencia property crisis has been learned, to avoid delaying the sale on the calendar.
4) HOW CAN YOU BENEFIT FROM BEING A SELLER?
If you want to sell your property in Valencia for the rest of the year you have to assume that we are facing a stage where the buyer starts with a certain advantage. If you do not want to lower the price too much so as not to make you feel that “you are giving the property away”, it is important to work with a real estate agency that has an assortment of national and foreign buyers and that knows its buyers well. This knowledge will enable them to match the offer with the demand in a balanced way. Knowing the buyer will be fundamental.
The foreign buyer, despite the restrictions, will continue to be important in the property market.
5) HOW CAN YOU BENEFIT IF YOU ARE A BUYER?
In principle, it is expected that there will be more properties in the Valencia real estate market. The first reason is that sadly there will be more real estate inheritances that will feed the supply market. The second reason is that, given the economic situation, there will be urgent sales to alleviate delicate economic situations.
If demand shrinks as expected, it follows that prices will fall, which will benefit the buyers.
If during the first quarter of 2020 you were thinking of buying or had started looking for a property, do not be discouraged because the market recovery is unquestionable and investment in real estate assets is always the one that gives more options and returns.
If you are a seller, contact a reputable real estate agency. They will help you to sell at a better price and faster than working between individuals. Don’t settle for the first private buyer who arrives with money in hand.
If you are a buyer, do your homework and fine-tune what kind of property you are looking for: one that suits your real needs and your objectives. Don’t be aggressive with the price because you could lose good buying options.