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Spanish house prices dropped 6.5 percent in October from a year earlier, the eighth consecutive month of declines as a property sector slump deepened. The fall follows a decline of 4.9 percent in September, property surveyor group Tinsa said.

Statistics on Spanish property prices vary greatly, with the Housing Ministry reporting a 1.3 percent drop in the third quarter from a quarter earlier and an annual rise of 0.4 percent.

In a survey conducted by Reuters at the end of September, house prices were seen dropping 3 percent this year and 9 percent in 2009. Tinsa said prices in October fell the most in coastal areas, down 8.9 percent, followed by metropolitan areas, down 7.6 percent.

According to the official price index published by the Ministry of Housing, Spanish property prices rose by 0.7% over 12 months to the end of September. The problem is that nobody believes the official figures anymore, and as of yesterday it appears that even Beatriz Corredor, Spain’s Minister of Housing, has her doubts.

“The latest overall data that I have seen for the last 12 to 14 months points towards a big fall, of at least 15%,” said Corredor yesterday on Spanish TV. “Anyone who wants to buy will definitely be seeing a fall in real prices. It’s unanimous; all the statistics reflect a fall, it’s a reality that we now can’t deny.”

But in the same interview Corredor went on to say that prices are only falling in line with inflation, which contradicts any suggestion that prices are falling by 15%. Officials at the Ministry of Housing have since qualified her statements as simply a reference to figures from sources other than the Ministry of Housing, rather than a confirmation that prices are falling by this amount.

The Minister also argues that now is a good time to buy property in Spain, as both property prices and Euribor are falling.

Story from Forbes and Spanish Property Insight

Is any property below €50,000 a cheap Spanish property? Are cheap Spanish properties only to be found at auction or as bank repossessions? How much below market value does a Spanish property need to be to be considered cheap?

Continue reading: What IS cheap Spanish property?