Asking price expectations have become absurd. Why? Because lashings of cheap debt drove up Spanish property prices to unsustainable levels. The credit crunch has now turned off the tap. Prices will come down (in some cases already are coming down) for the vast amount of new build rubbish that has been built in recent years (but not for the small amount of quality, or at least not by that much). The Spanish economy will deteriorate from here on, and at some point the property market won’t be able to take it anymore. Bubbles always take longer than you expect to burst, and Spain has a rigid economy that doesn’t respond fast like the US.
then, in your opinion, what will happen? is this rigidity in the economy going to make the crisis worse than in the US?