Juan Hernandez Albarracín, president of the Association of Real Estate of the Murcia Region (APIRM) states that 'The house price does not drop', besides being one of the most repeated phrases from the real estate sector is also one of the largest nonsense can be heard.
In any market (including real estate) prices will be affected if the offer is much higher than demand, thus linking the housing market to the inability to lower the price is a contradiction. Now, with its nuances.
We believe the housing market as the set of supply and demand for houses completed or under construction that are offered for sale. One of the main distinguishing features is that housing is a necessary by-law and definition, and that can not be moved from site. Every person has its preferences for the area where live.
These factors, together with the current economic situation, will made possible coexist in the same area an oversupply of homes and an unmet demand. Therefore, the demand and supply may tend to become inelastic.
On one hand, a price reduction of housing in oversupply areas does not guarantee that unmet demand will be met. For example, a large family, as much as housing prices of 1 or 2 bedrooms fall , they will not see their needs met.
By contrast, if an area of great interest by the prospective buyer has not offer, housing prices will not decrease.
We must therefore speak of many micromarkets estate, which also live in space and time simultaneously. Some micro-markets may be in an acute process of deflation and others simultaneously undergo the reverse process, that is what is happening.
Murcia, for example, has only 1,400 homes in the center and areas for expansion, for a total stock of 8,000 units. Of these 1,400, most are 1 or 2 bedrooms, while the current demand for housing is 3 or 4 bedrooms.
The housing prices are not low. False. Housing market remains for an adjustment of the 'X'% 'depending on who published the study. Also false. Each area and each profile property has a different reality, so beware of those who will be generalized because only owners. It is necessary to study each area and type of housing as a micro market and analyzing prices and discounts on your needs.