People are paying what they perceive the property to be worth and those owners whose prices are too high aren’t selling.
If there are millions of properties for sale and only thousands (hundreds or about five…?) buyers then obviously those who want to sell will lower their prices to sell….or stay put.
So therefore I believe that the prices will go down as there aren’t any buyers and everyone wants to sell.
The banks are getting rid of places for peanuts as they have so much on their books. If a bank repo is 20k how does a private seller warrant 80k for their place? The buyer will go for the bank price won’t they, unless they are mad or have rose tinted glasses and only listen to an estate agent?
I, sadly, believe that it’s going to be years and years….probably more than ten, before things even start to look up. There is just too much for sale and too many horror stories for people to rush back to buying in Spain. Some will as they enjoy holidays over there and they’ll blindly believe that retiring there is the same as one long holiday.
We are honestly working out that we’ll pay ten years more mortgage to probably sell our flat for the outstanding mortage then, if we are lucky. Ten years of paying 500 euros per month and ten years of community fees, blah blah, just to make zero. BUT better than paying the full mortgage term of 26 years to then make zero…. I so wish we didn’t but hey ho…. I wish that property prices would jump up again just to get us out of the mess we are left with…. but I just can’t see it happening. The boom was a one off and it won’t be back in Spain.