Price expectations of the majority tend to be self-fulfilling, and right now more than half of all Spaniards expect house prices to continue falling this year.
52.3pc of Spaniards expect house prices to fall further this year, whilst 35pc expect prices to remain unchanged, according to the latest survey by Spain’s CIS social research centre.
The survey finds that 4pc of adults plan to buy a home in 2013, suggesting weak demand that bodes ill for the market next year.
26pc of Spaniards blame the Government for falling property prices.
The prices expectations of the majority tend to be self-fulfilling, so on this basis alone it is rational to expect property prices to continue falling.
Given that property prices have done nothing but fall since the end of 2008, even according to official statistics, I find it encouraging that more than a third of Spaniards expect prices to stop falling this year.