Average house prices have declined 6.6pc over 12 months to the end of June,according to the house price index published by Tinsa – one of Spain’s leading appraisal companies.
Holiday homes have led the fall, with prices on the coast down 8.7pc in 12 months. The market on the coast is struggling to diggest a large helping of second homes, made more indigestible by the disappearance of British buyers.
After the latest falls, prices are now back to where they were 6 years in 2005, but even that means that prices might still be too high.
Peak-to-present, house prices on the coast have fallen the most (-28.8pc), followed by cities (-23.4pc), suburbs (-22.9pc), and the islands (-20pc). On average prices are down 20pc since their peak at the end of 2007.