I did read the article highlighted in Brian’s link, but I lacked the courage to read through the 1,369 comments. The article itself could well have been written about the state of the Spanish housing market, and possibly other countries’.
In answer to Angela’s post about the scale of the crash in the early nineties; I was in Spain at the time and witnessed falls of over 50% between ’90 and ‘92. I don’t have any statistics, but remember villas around the Estepona area falling in price from 50K to less than 25K.
When the recovery set in around ’93 the properties quickly recovered their original value of 50K and ten years later were selling at three times that, a 300 percent rise, at least.
That’s what I think will happen this time round, starting as early as next year. The early nineties were just as desperate as the late noughties, to the best of my recollection.