Personally, I think the banks are insolvent and cannot afford to write off the amount needed to start selling again. Hence we have a tactic of creating a “no market”. If you dont sell at a loss, its not a loss. As it stands, they get time to write down these loans on their books whilst they recapitalise and the properties only lose 20% after 12 months. The reality is they need to reduce by 50-60% to start the sales moving.
Thats my take on it. As ever, could be totally wrong.
You are technically correct adiep. The banks are not concerned with the state of the market only their balance sheets. The ECB have a policy of maintaining price stability and the last thing they want to see is a collapse of market prices in Spain. Why? Because the banks would buckle.
In my opinion prices need to be reduced by 75% before any significant movement takes place or any further interest from me.