I think that most people are pre-conditioned (by the constant glare of media publicity) that prices still have some way to go before rock bottom is reached.
That may require corporate collapse of developers and subsequent bank sell-offs of entire swathes of land/property at pence in the pound. It may be that the english couple that wanted €400,000 for their villa can only get €150,000 and have to live with the consequences….or not move at all. But in a collapsing market the vendor is always hoping to get more than he can for a given property and therefore the bottom of the market takes longer to arrive than people thought.
I am looking to buy, I admit I should have done it 10-12 years ago, but there is no way I would touch the market for another few years now. A good deal on a property in 6 months will get even better after if you wait another couple of years. As a potential buyer I have become immune to the sales nonsese about unique opportunity, one-off discounts etc. It’s all baloney. It is a hard fact of life that hundreds of thousands of properties will be available in a few years at well below their build price/well below what the owner paid for it. I don’t want to profit at anyone else expense, but why should I buy now only to face negative equity tomorrow.
Then we have the thorny topic of legality which someone has to tackle in order to give confidence to the few potential buyers that are left. That is another reason to wait for a while, perhaps in a few years when the property market has collapsed the government will be forced to act on the legal/illegal build fiasco that has permanently tarnished the spanish property market.