Observation: The higher the price, the less likely it would significantly drop.
There is a rather high correlation (-0.80) between price (€/m²) and price difference from historical maximum (%) for properties in Las Palmas between different neighborhoods.
During the recession demand for properties drops. Obviously, more people are worried about their future and are less likely to do investing or spending savings on buying a home.
Valued and demanded properties are still expected to be demanded and valued after recession turns around, therefore price does not drop as much on average, by the expectation of the future. Wealth has patience.
On the other side, larger discounts usually are caused by wanting to sell faster, which is achieved by lowering the price making the offer more attractive to potential buyers. In haste goes profit to waste.
I wonder, could there be a correlation between the mindset of the owner and property price as well?
Wish you a great day. ♥ Smile & Be present! 🐝 Invest in Correlation & Real Estate ♥
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