Property Prices & the Market

The euro is not condusive to buying for UK residents, maybe for Russians or other Euro denominated countries.

One of my Italian estate agent friends said they had a great year last year despite a shaky start. It was almost exclusively Italian buyers though. They have also reported an increase in the number of foreign (including from Brits) enquiries so far this year so maybe you're right. Let's hope so as I still have my little house to sell!

Our close friend who is an Estate Agent here in Tuscany has reported many new enquiries form the UK, but during the last year said that over 80% of his sales were down to Italian buyers and only 2% from the UK. He has seen a significant increase though in enquiries from Russia, and the other Baltic regions Latvia Estonia etc... the new 'nouveaux riche' maybe ??

Or simply a reflection of where the money is nowadays.... It must have gone somewhere 

"First of all, I would like to say that other than the odd bottle of wine or meal, I have no financial interest whatsoever,  in any property or estate agency business. That said, just speaking around, there does seem to be a general feeling that the market has stabilised and confidence is again returning. I can't put my finger on anything in particular but it does seem to me that sentiment is improving. Transactions here (Sardinia) are certainly off the bottom and properties appear to be selling a little more quickly compared to the previous two years. I've been quite negative on the market for a number of years (you can check back on some of my old posts) but I wonder if the bottom has now been reached and the next move is upwards. I'd be interested in others thoughts.?" What you see is correct. Both Nomismas Autumn 2010 report and ISTAT point to an improvemnet in transaction numbers from the low, but nothing like pre crisis levels, click download for details on this page (beware it has an interest in property, but cant find on Nomisma site) http://www.keyitaly.com/blog/italy-property/2010/11/29/another-nomisma-report-the-storm-is-abating-in-the-italian-property-markets/ property fell by 2.5% in 2010 (compared to 6.8% in 2009), a reminder to some that thought Italy was immune to price drops. Some analysts predict a slight increase of 1.2% this year. Figures easily skewed with low volumes, Vedremo! That said, around here S Marche, some foreign buyers are returning (fewer Brits) for the stand alone market,  they seem to be looking for quality (especially high spec turn key) or value. The stuff in between, mid priced outdated restorations are being passed by unless the location is exceptional. Inevitably, buyers know its  a buyers market so are negotiating hard.

To quote national figures for a country with such huge differences between north and south, urban and rural is absurd.  Micro markets have existed in Italy since the dawn of the expat trail - the centre of Siena was always completely out of kilter with the rest of Tuscany,  Taormina is not representative of Sicily, which in turn is hardly the centre of Milan, or a mountain in the Alps.   The data is collected in square metre prices on recorded sales - which is totally useless.  If you sell three houses in Liverpool and one in Surrey, you would get a square metre price that is skewed for both locations.   A square metre price for an apartment in a 1960s condo is not comparable to a stone cottage next door.  Like most Italian statistics they are designed (like the laws) to be interpreted, not to be accepted at face value. Italians use the square meter argument because their taxes, rates, and rubbish are all calculated on the overall sq metrage of a property, but as a realistic guide it is ineffectual unless you are looking at office or warehouse space.   And then of course you have to take into account that for some misguided people underdeclaration is still the norm which further skews the figures and makes a nonsense of it all.   Having said all of that, the market has dipped, though I would argue that while the number of sales have fallen , prices haven't - but they have levelled, and the negotiations are harder - more people want the kitchen leaving in situ and so on.   

Ram, no one is arguing that these figures ARE a true reflection of whats happening in different regions and micro markets. Not even the agencys that compile them. as i say they are to be taken with a pinch of salt. I posted them in answer to Capo Boi, as they confirm his observation that the numbers of sales are bubbling up again after the last two yrs.

As you say Pianpiano, no-one is saying they are - but .. you would be amazed at how many people arrive in my office waving spurious figures and telling me the market is in crisis, and therefore owners should sell at half price.   Now, I accept that the market in Detroit 'ain't happenin' and but what has that got to do with me and Sicilian vendors?  THere is, unfortunately, an arrogance that the buyer (and wherever he/she comes from)  is the greatest economic expert known to man,  even though the experience is based on what they have seen on the news, and that the nephew of their next door neighbour only sold his house when he reduced the price and put in a whirlpool bathtub.    Armed with these facts, therefore, they know everything about the Italian property market, backed up by bits of paper from ISTAT.  It grates, believe me. .... 

One must remember in all this a property is only worth what someone will pay for it, no matter what an Estate Agent may ask, it is in the end down to the Seller to accept an offer which may be 5, 10, 20% below the asking price. To have a blanket figure on property prices gain or loss is both misleading and worthless; a trend on Sold prices over asking price is a far better guide.

We are lucky in the UK that we can go on-line and see exactly what a house has sold for approx 6 weeks after the sale.  I don't think this is available in Italy, but I may be wrong?

You assume that the estate agent decides how much the property is on the market for.  We don't.  The seller can stipulate the asking price as well as the selling price - and usually the agent knows nothing of what is going on in their heads....