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Author Topic: Property Stagflation  (Read 2039 times)

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Property Stagflation
« on: January 13, 2008 »
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  • Economist will tell you that if a market is stagnant and things aren?t selling, then prices will stabilise and fall. However, very very occasionally, something called stagflation  occurs where things aren?t selling but prices are rising. Superficially and in the short term, it appears to be currently happening in the Los Gigantes housing market because of the strength of the Euro.

    If you look in Estate Agents windows, most  properties in Los Gigantes are selling in Euros and because of the recent rise in the value of the Euro, the selling prices of those properties is rising for British buyers with pounds in their pockets. And those properties selling in Pounds are becoming relatively more competitively priced for buyers with Pounds (and falling for buyers with Euros).  My guess is that Euro sellers will have to drop their Euro prices to compete. But if Pound sellers in Los Gigantes get greedy and switch to Euros and adjust their prices upwards then they may price themselves out of the British buyers market. Interesting times ahead.


    Re: Property Stagflation
    « Reply #1 on: January 13, 2008 »
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  • Perhaps it is all part of the European Parliament masterplan because at the rate things are going it won't matter whether your prices are in euro or pounds sterling - they will be the same !
    Finally when one pound equals one euro we will be absorbed into the 'new' currency !
    May take just a little longer....


    Re: Property Stagflation
    « Reply #2 on: January 14, 2008 »
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  • TO quote Star Trek or more accurately "The Borg" (not that I'm a trekkie) "Resistance is futile, we can assimilate"