Spain's home sales fall 1.8% in April, extending decline to four months

National trend worsens

Home sales recorded 53,241 transactions in April, down 1.8% from a year earlier and the fourth month of declines, according to the National Statistics Institute (INE). The drop follows a 5% fall in January, a 0.5% slip in February and a 2.2% contraction in March. Year-to-date, transactions are down 2.4% after a record 2025 that saw 714,237 sales, the highest since the 2007 property boom. Compared to March, April sales tumbled 13.1%.

Used homes drag, new builds barely positive

The decline was driven almost entirely by the second-hand market, which makes up more than 78% of all transactions. Used home sales fell 2.4% to 41,783, the lowest for an April since 2023. New home sales rose a marginal 0.6% to 11,458, halting a three-month losing streak but still well below the pace needed to close the gap. Protected housing plunged 12.3% to just 3,295 units, while free-market sales slipped 1% to 49,946.

Regions split between gains and steep drops

The national picture masks sharp regional differences. Cantabria led gains with a 22.53% year-on-year increase, followed by the Basque Country (8.77%) and Catalonia (7.79%). At the other end, Navarra recorded a 29.05% crash, Madrid a 10.98% decline and Castilla y León a 9.42% drop. Andalusia and the Valencian Community fell 3% and 7% respectively, while Extremadura, La Rioja and the Canary Islands posted modest rises of 2–3%.

Analysts see inflection point after record year

Francisco Iñareta, spokesperson for property portal Idealista, said the data suggest the market is at a turning point, if not a full change of cycle.

The market seems to be, if not at a change of cycle, at least at a turning point. Housing has reached prices that make access impossible for a large part of demand. And the rising cost of financing further complicates their possibilities. In this situation, it seems clear that we are heading towards a scenario of price stabilization.

Ferran Font, head of research at Pisos.com, pointed to the comparison with exceptionally strong months in 2025 as a key factor.

The data points to the residential market entering a phase of slight downward stabilization after a record 2025. Activity remains at high levels, but year-on-year evolution shows a progressive loss of intensity, especially due to the comparison effect with exceptionally strong months.

Font added that the ECB's rate hikes are already feeding into higher Euribor rates, which will likely push up new mortgage costs and cool part of the demand.

Supply shortfall looms large

The Banco de España warned on Thursday that the country needs 750,000 additional homes to meet current demand, a deficit that is widening each year. With prices still elevated and credit becoming more expensive, the combination of tepid new construction and dwindling used-home sales suggests the slowdown may endure beyond the second quarter.