The internal market isnt dependant on the exchange rate and neither is any one on euroland.
The spanish are reticent as the interest rates rise and more importantly the young uns who could get 125% now cannot as banks restrict criteria. Also they are being warned off and are also worried for their jobs – that is having an effect.
More properties are coming onto the market but not necessarily cheaper in real terms as the sellers bought highly geared in the first place and now their outstanding loans are equivalent to the bank valauations – meaning in reality their properties are pretty much unsaleable at that price as buyers are buying well under bank vals.
I do sell to the Spanish and see less enquiries and my spanish colleagues all say the same.