I think the banks attitudes are going to make the recession longer. Not just Spain but all other countries too.
I have a friend who has been trying to sell a small apartment in marbella, they were first time buyers 6 years ago and are in a position to move up. They have been trying to sell for 2 years, have had buyers who are capable of paying the mortgage but the bank does not think so. It is in a spanish residential area and would not appeal to foreigners but the banks think spanish wages are not high enough for spaniards to buy!
On a different not I was thinking of changing my car, some good discounts around but no-one will take my car on any terms |(it’s only 4 years old! low kilometros). I know I shall be unable to sell it myself as other has had their cars on sale for months. So, I won’t buy, the dealer won’t make a sale and the economy grinds to a halt!