Standard and PoorsThe Spanish property market crash has not yet hit bottom. The Standard & Poor’s rating agency believes that the country is still “a long way to go,” and that prices could still fall another 12%.

The authors believe that “the massive stock of supply” of housing (around a million homes, according to some estimates) should have caused a greater fall in prices. In any case, since the creation of new homes has fallen to about 300,000 a year, “will take several years to absorb the excess.”

Housing prices in Spain could collapse 12 per cent according to a report published by Standard and Poor’s on Tuesday.

According to official figures contained in the report, the annual rate in house prices in Spain fell by 6.1 percent in the fourth quarter of last year.

S & P also includes data provided by Tinsa, one of the largest assessment agencies property in Spain, which estimates that property prices fell by 5.3 percent in the last 12 months to March 2010 compared to June, 6 per cent in December 2009.

Accordingly, the price of housing in Spain, where economic fundamentals are “bad”, have not decreased more than 16 percent, far less than what happened in the UK or Ireland.