At long last, there is light at the end of the property market tunnel. The green shoots of spring are starting to show now in the property market here in Tenerife after a quiet start to the year. Sales activity in the Tenerife South is literally “on the move”, continuing a trend that initially started in January.
Activity in Tenerife at the moment is focused on the bottom of the market, with over 70% of sales in the sub €150,000 sector, but there are signs that the trend is moving up the price scale. In both January and February, closer to 80% of all sales were in this bottom price bracket.
Enquiries have been steadily increasing monthly, with a rise in demand now for €800,000 plus properties, as affluent purchasers identify that market prices appear to have hit bottom.
Even the press, who many people blame for the crisis of confidence, are starting to pick up on the changes. The Economist recently wrote that homes have reached their fair prices if rent prices are taken into account, even saying that we are seeing the first indications that the end of the recession may be in sight.
The news is good for purchasers and sellers alike. With the increased availability of mortgage funds now in Tenerife there are signs of a gradual return of confidence in the property market. Clearly, from a buyer's point of view, the time of easy pickings and bargains is drawing to a close. Owners who are selling their property can see some positive news, but should certainly remain cautious and price their properties competitively.
