Regarding if prices have fallen to 2002 levels, here’s my observation:
I have been studying the market in Barcelona since 2003. And in 2003 I was interested in a piso that was 60m2, 3 bedrooms, 1 bathroom, in the Poble Sec neighborhood. The price listed on Idealista was 164.000 euro. The piso was quite charming and didn’t need any work.
I just did a scan of Idealista, the same neighborhood, for the size, bedrooms, etc, and found several that were close in price. This neighborhood is considered ‘marginal’ by some, and the prices are more fragile than in other parts of Barcelona. But I am sure that the 2003 piso could have been sold for something over 300.000 at the market’s peak. 3 years ago, I looked at one that was a bit larger, had more charm, but also had major problems (rooms with no windows, etc), and the asking price was 379.000. It did eventually sell, but I don’t know what the final price was.
The problem in determining “price levels” is that the asking prices for pisos is ridiculously inconsistent. I’m guessing that in the larger developments in coastal cities, there is greater consistency in the asking prices for pisos. But in large cities, there is no logic for asking prices.
PS: It looks like I may have gotten a good mortgage: euribor + .9% and none of the nonsensical conditions (no floor, no prepayment penalties, etc).
