I do think that it is really a good time to buy not only because the prices are good and owners are more willing to negotiate due to the covid situation but also because the interest rates of mortgages are extremely good.
To start with, please find attached a table that summarizes some of the offers at fixed and variable rates being marketed by Spanish banks to Spanish residents (Sept. 2020) with the lowest rates due to additional products that have to be contracted:
Where the index generally used in Spain is the euribor that is today on –0,433%. So on a variable rate mortgage, the interest rate would be around 0,46% that is almost nothing. If fix rates are considered, when comparing the actual fix rates with the historic average of the index, on a house bought for 300.000 € with a 80% mortgage, the interest would be 338 €/month while when using the average historic euribor, the amount would have been 614 €/month on interest. That is quite a difference. The savings for the whole live of the mortgage would have been of around 50.000 € (as per below table). That means a 17% discount on the final price so something to be considered.
So, should you wait for prices to drop down a little bit more? That is the magic question. No one has the crystal ball to match the market. If you wait, you may lose the bottom and the best opportunities may have already gone in front of you and you will have only the left overs. Experts say: do not try to time the market. If you find a good opportunity with these interest rates, go for it. Perfect timing is luck and experts do not rely on luck.