According to a study by Tecnocasa and Pompeu Fabra University, this pattern is due to the fact that there is a lot of private real estate offer that is overvalued. In fact, overvaluation can reach 17% and 16.5%, respectively, in Madrid and Barcelona. This percentage measures the difference between professional valuations and the price that owners of properties for sale are demanding.
Bankinter analysts estimate that the overvaluation of housing prices in Spain was close to 9% as of December 2020, in relation to family income, and could be higher in prime areas of large cities. Therefore, they expect a price correction similar to that -9% in 2021.
The experts who prepared the report emphasise that “this is the only market study that works with real prices of completed sales and purchases. Other reports use offer or appraisal valuations as a reference, but not complete transactions which have already been carried out.”