Spanish house price fall 'gathers pace'

Spanish property may be about to offer more bargains as the rate of decrease in home values gathers pace.

Figures from the Spanish government for the first quarter revealed the fastest quarterly decline ever in the first three months of 2009, a plunge of 6.8 per cent.

There was also a three per cent quarter-on-quarter fall, the fourth in a row.

Such a trend may encourage those keen to pick up bargains in the country in the near future, with experts suggesting that the trend for prices to fall is not over as more adjustment is needed.

Investment bank Credit Suisse stated that "the market continues to be significantly overvalued", while housing minister Anunciacion Romero said that prices have not been reflecting the "true value" of homes and are undergoing "adjustment".

Spanish newspaper El Mundo recently suggested that the worst of the decline in the property market may now be past, Kyero.com reported.

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