Personally I think it is a load of bull. If they were that low the spanish would have stepped in.
Depends where they are. I know on Costa Blanca 1 bedroom apartments for 35000 Euros but I have not seen yet a 25000 Euros one. Probably the 35000 Euros can be negotiated to 25000 Euros so that might the bottom price as of April 2009.
Don’t forget that the 1 bedroom repos in Las Vegas go for $10000 which is about 7000 Euros.