Ask any real estate agent this question and they will invariably answer “Now is the best time to buy”. Of course this is self-serving as now is always the best time to get a commission cheque. Barcelona real estate has taken a hit since the heady days of 2007 but is now the time to buy?

In December 2007 (the market peak) most people were saying “It doesn’t get any better than this!” They were right. It could only get worse.

So is now the time to buy? You have to ask yourself the question “Do you think the majority of people think the market will go down? If so, now is the time the buy. It sounds counter-intuitive but this is the crux of contrarian thinking. When the majority of people think the market will go down it means that those people have already sold. With all the sellers out of the market, prices have nowhere to go but up.

Remember the old adage “Buy low, sell high”. Most people embrace the latter but have trouble with the former. Many people buy high and hope to sell higher. The time to buy is when prices are low.

I will be visiting Barcelona in April 2013 for three days before I embark on a Mediterranean cruise. I am looking forward to checking out the real estate market. I may even put my money where my mouth is.

- J. Paul