The gap between home buyers and sellers increases to 40,000 euros in 2020.
The gap between sellers and buyers increased in 2020. According to the latest supply and demand report in Spain and in 2020, sellers offered a standard apartment for an average price of 137,520 euros, while buyers had a budget of 97,500 euros. The difference was 40,020 euros, that is, 640 euros more than the previous year.
The distance between both parties has increased due, above all, to the fact that what the future owner is willing to pay has not changed from one year to the next. On the other hand, the offer has become slightly more expensive. In this sense, if the gap between the seller’s price and that of the buyer was 40% in 2019, in 2020 it reached 41%. This is the third highest percentage since they began to make this comparison after it reached 55% in 2009 and 47% in 2010.
For most, “the new normal has allowed the real estate market to resume its dynamics, but the destruction of employment and the cautiousness of demand have prevented it from returning to pre-crisis figures.” Experts point out that “the cuts in house prices are being absorbed little by little, above all, because there is an important cushion of government aid that will be expanded thanks to European funds. This support will mitigate greater evils, which is why the gap that exists at this time between market prices and what one is willing to pay for owning has hardly changed. In any case, that “the confidence of the demand, greatly damaged by the pandemic, will be the one that sets the pace.”
Two autonomies reduced their starting budget when looking for a house for sale (Madrid and Navarra) and another two raised it (Balearic Islands and La Rioja). The highest starting price was thrown by the Basque Country with an average of 247,500 euros. On the other hand, Aragon, Asturias, Castilla-La Mancha, Valencian Community, Extremadura and Murcia searched for flats for 67,500 euros on average. The autonomous regions where supply and demand were closer were Navarra (-4%), Basque Country (0%) and Castilla-La Mancha (5%). The greatest imbalances occurred in the Canary Islands (63%), Asturias (54%), Madrid (51%) and the Valencian Community (51%).
The amount of money that the demand was willing to invest fell in eight provinces and rose in four. The people from Gipuzkoa were the ones who started with a higher amount with 277,500 euros on average, followed by Biscayan (217,500 euros), Balearic (172,500 euros) and Alava (157,500 euros). In a total of 28 provinces, clients searched for housing for the lowest registered price, about 67,500 euros. On the other hand, demand exceeded supply in two provinces: Navarra (-4%) and Vizcaya (-1%). There were six provinces above 60%: La Coruña (61%), Santa Cruz de Tenerife (61%), Seville (62%), Cádiz (65%) and Las Palmas (65%). For its part, Alicante led the ranking with 77%.
On the other hand, nine capitals lowered their budget, while six raised it. The people of Donostia were willing to spend 292,500 euros on average, the highest amount. In Bilbao (247,500 euros), Barcelona (217,500 euros), Madrid (187,500 euros) and Vitoria (157,500 euros) there were buyers willing to pay more than 150,000 euros to become owners. A total of eight capitals were registered where the demand handled an output amount greater than 100,000 euros. The lowest limit registered, 67,500 euros on average, was the trend in 14 capitals. There were no capitals where demand was above supply. The capitals that showed the highest gaps were Las Palmas de Gran Canaria (77%), Alicante (73%) and Madrid (72%).