Spanish and Mallorca Property Markets Boosted by Euribor Falls

Some good news is at least emerging out of the				some relief for existing home owners and for those
general economic and financial gloom with the Euribor,				wishing to take out mortgage finance to fund a
the main reference rate for Spanish / Mallorca				purchase, just when some good buying opportunities
mortgages, continuing it's downward trend of the last				are starting to emerge. Regarding the latter we are
fortnight to situate it's self at 4.98%, the first time it				at last seeing, in Mallorca, buying opportunities due in
has been below 5% since May.				the main to some early distressed sales and general
With the president of the ECB strongly indicating that				pressure on the new homes sector. In the months
next week should see a further cut in Eurozone				ahead we foresee this feeding through to the
interest rates it seems likely that the Bank will use				market more generally as property owners wanting
any opportunity to reduce rates in an attempt to				or needing to sell repricing their homes to reflect the
boost the dramatic slowdown in the European				new "economic reality".
economy. That said they will also want to remain				That said this is only likely to effect a minority (all be
wary of cutting rates too far and too quickly leaving				it growing) of properties resulting in a market with
the authorities without sufficient ammunition to fight				very wide variations in prices, not all of which will be
future problems at a time of such financial and				that obvious. Critical for buyers will be good research,
economic weakness.				and specifically valuation advice, so that individual
With most other variables associated with the				buying opportunities can be analysed and an
Spanish / Mallorca property market remaining so				objective view taken prior to any purchase decision.
weak this trend in the Euribor will at least provide