Spanish property prices fell at a accelerated rate for the second quarter and many economists think that prices are unlikely to have hit the bottom because of housing stock and forecast of a protracted recession.

Property prices fell by 7.7% year on year in Q2,  demonstrated by official data released on Wednesday, showing a year of falling prices and a slight worsening of figures in comparison to the previous 7.6%  drop between the months of January and March.

Second quarter property prices dropped by 0.4% on a quarter upon quarter basis, against a 2.7% drop in Q1 according to the National Statistics Institute.

The price of brand new properties decreased by 3.9% year on year, the second quarter of falls. Existing property prices dropped by 11.2%, slowing down from the previous drop of 12.5%  in Q1.

There are expectations of a protracted, drawn out recession, unemployment at a rate more than double the European median and new property stock piles which are  similar to that of much larger economies will result  in the property market being in a slump for some time.

Property values have been softened by more difficult mortgage lending criteria, which fell 33.9% in July, and real estate sales are 20.3% less than the same month year on year.