Spanish house prices on the way down

Spanish property prices still have a way to go before any level of recovery can begin according to one of the country's leading banks.

A massive over supply of Spanish property of all types has flooded the market that has resulted in property prices dropping by up to 40 per cent in some areas particularly coastal resorts.

There are high levels of repossessed properties up for sale plus a back log running into many thousands held by lenders yet to hit the market. Before a more even balance of supply and demand can be achieved experts believe prices need to drop by another ten per cent.

Official figures reveal an average fall of more than 15 per cent in the last three years and by the end of 2011 experts predict another 8 per cent drop across most sectors of the housing markets which will see prices on par with 2008.

Full recovery is not expected to be established until 2015 at the earliest according to leading property experts.