Spanish Banks set limits on new price drops.

In an interniew en the Spanish newspaper "El Mundo", the President of the Colegio General de los Colegios Oficiales de la Propiedad Inmobiliaria (COAPIS), Santiago Baena, declared that the price of property in Spain will not drop any further, and may even rise in some areas.

The bank in Spain has now become a strong player in the supply side of the market with property that has been repossessed from both developers and members of the public.

"Everthing has its limit" Mr. Baena esplained. "And the prices are about to reach rock bottom."

Reposessed property can not be sold below its mortgage value, a value that was originally a percentage of the sales price. Also developers can not apply further discounts to those already applied. Once they reach a certain point the very banks who finance them will take the property back rather than allow them apply deeper price cuts.

In this fierce debate of value versus price, we at Compass Amazing Resorts have one piece of advice: if you like what you find and you can afford to buy it at the given price, do so. The market is much more active now and people are losing deals because they hold out for even further discount.

"It has become a bit like a Dutch Auction," explains Tim Landseer Brooks, at Compass Headquarters in Regent Street. "Many people are waiting for the price on a particular unit to drop again because they know the property has been on the market for some time, then suddenly it is gone."

In the last two months Compass Amazing Resorts has seen a rise of more than 200% in property sales wehn compared to the same period of 2009.

"This is not a false spring," Says Tim. "This is a positive trend. Something that is good for the market."

If you are interested in Spanish property then please browse our property selection on http://www.propertyinbarcelona.co.uk
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