Last year saw the biggest drop in prices since the crisis began, according to the official House Price Index published by the National Institute of Statistics.
Spanish house prices fell 12.8pc over 12 months to the end of December, and by 1.4pc in the last quarter.
The price of new housing fell by 10.9pc, whilst resale housing fell by 14pc.
Declines were smaller in both categories compared to the previous two quarters, but it’s too early to say if this is the start of a trend towards price stability or just a hiatus before prices dive down again.
However, the index has been falling since the beginning of 2008, and we are now into the sixth consecutive year of falls, with double-digit declines since the last quarter of 2011. Cumulative declines are now more than 30pc. It is fair to assume we are now somewhere near the bottom.
The following chart illustrates house price declines by region in 2012 (Q3 in orange, Q4 in dark red). Prices fell the most in Catalonia (-14.3pc), followed by the Valencian Community (-14pc) and La Rioja (-13.8pc). Prices fell the least in Extremadura (-9.8pc).