There are some similarities with the previous crisis.
Personally, I think property is still seriously overvalued in both the UK and Spain possibly by as much as 30% even though prices have fallen somewhat.
Savills are now saying UK prices will likely fall a further 25% over the next 2 years which if so, will still give owners a good profit if they bought over 3 years ago should they sell. Spain’s prices are likely to fall much further too as there is so much of the same everywhere and the pound is weakening too so investors all but gone.
In both countries, a lot of bog standard property now looks so overpriced, perception alters quickly and property doesn’t look value for money anymore.
A shake out is good for the market though, and allows 1st timers a chance to get on the ladder, but a point has been proven, that is property does not always rise in value, it’s sometimes best to take profits when you can.
The US seems to be gradually coming out of it’s recession and property crisis and people are now investing there and in the dollar whilst dumping the pound and the euro, everything is cyclical, but Spain and the UK could be down for several years to come, some say as much as 10 years.