Resale asking prices have fallen 7.3pc over 12 months to the end of August, according to idealista.com – one of Spain’s leading property portals.

That is marginally better than the 8.2pc annualised fall in July, but that is as good as the news gets.

In Euros / m2, the average asking price of resale property advertised for sale in the Idealista database now stands at 2,167 €/m2, down from 2,339 €/m2 a year ago, and 2,172 €/m2 a month ago (-0.2pc).

On a monthly basis (30 days), prices rose in 9 autonomous regions, led by Navarre (+1.6pc), Asturias (+1.2pc) and Cantabria (+1.1pc), all three of which are in the North of Spain. Prices fell the most in Aragon (-1.7pc), La Rioja (-1.5pc) and The Balearics (-1pc).

So it seems that vendors continue to reduce their expectations as Spain’s real estate crisis grinds on.

Further pressure on asking prices will come from the government’s decision to slash VAT on new homes from 8pc to 4pc.