42,883 properties were sold last October, 28% fewer than during October 2007, according to National Statistics Institute figures released yesterday that reveal a huge difference in trends for second-hand properties (-43%) and new-build (-9%).

There was a corresponding 34% decline in the number of new mortgages and the average value dropped 10% to €135,202 euros.

Real estate expert, Gonzalo Bernardos, believes that, as a result of downward price pressure and governmental fiscal intervention: "The worst is over. We won't see a return to the magnificent years. 2009 will be a bad year, similar to 1993. But, 2008 has been horrendous."

Owing to the number of repossessions, Mr Bernardos went on to predict that: "In 2009, banks will become estate agents and start offering mortgages up to 110% if you buy from them," and, given that the euribor rate used to calculate mortgages in the eurozone has fallen 2.5 points recently to below 3%, that sales will begin to pick up by the second or third quarter.

However, Gregorio Izquierdo, who is the director of studies at the Economic Research Institute and a professor at the UNED, is more cautious, and thinks that the recovery may not begin until the end of the year, which is by when he predicts that market prices will have stabilised.