Good to see the Governor of the Bank of Spain speaking some sense about the Spanish property market:

http://www.propertyinspain.net/news/2006/0...in_bank_prices/

The risk of a sharp fall in house prices is increasing and could halt Spain's economic growth, the governor of the Bank of Spain warned.

I think this could be really messy. There are whole communities along the Costas that have been deserting their traditional trades in argriculture, and so on to earn their income from the building trade. Times have been very good, but will soon be very bad. Unemployment is already high. I think there could be some real social damage done to communities when this gets into full swing in the next few years.

I was watching a property porn show a few weeks back, the usual where they tell people they need to get into the Spanish market blah blah blah.

Except this time the presenter said that the bubble in 2 bed flats in the Costa's had popped.
It was becoming almost impossible to sell these places, and there were so many, people didn't want to come on holiday and stay in a 2 bed shoebox like the one they left at home.

He was advising clients to stay away from these places, and rather go for something rural that still has an element of original culture, low prices, and isn't full of lager louts.

It's been on TV, so it must be true...