Asking prices are still between 10% and 20% too high, reveals a new survey of house-hunters carried out in March by the Foundation of Savings Banks (FUNCAS).

84% of Spaniards think that vendors are still asking too much, and more than half think prices will fall around 10.5% this year.

Compared to the last time this survey was carried out, however, the general perception of value for money has improved. In 2005, 95% of Spanish house-hunters thought property prices were over-valued by between 30% and 50%.

“There is still a perception that prices are overvalued, although less so, probably as a result of official prices falling for 2 years,” explains real estate expert Prof. José García Montalvo, in the report from FUNCAS.

Is now a good time to buy property in Spain?

Is now a good time to buy? Spanish house-hunters are divided. 55.5% say yes “fundamentally because of low interest rates,” whilst 44.5% say no. So the current and former Ministers for Housing are not the only ones who can’t agree if now is a good time to buy property in Spain.

The survey by FUNCAS also reveals that most house-hunters think it will take the market 7&1/2 years to recover fully, though a significant minority are optimistic a recovery will happen much sooner.