Spain's home sales fall 7.3% in May, fifth month of decline

Spain’s National Institute of Statistics (INE) reported 56,462 home‑sale transactions in May, a 7.3% year‑on‑year decline – the sharpest drop in two years and the fifth consecutive month of falling sales. The slowdown affected both second‑hand properties, which fell 7.6% to 44,574 units, and new‑home sales, down 6% to 11,888 units.

Regional data show declines in 15 of 17 autonomous communities; only Extremadura (+2.6%) and Andalusia (+2.2%) recorded modest growth. The steepest falls were in Cantabria (‑28.6%), Murcia (‑19.1%) and the Balearic Islands (‑16.8%). Madrid, the Valencian Community and Catalonia also posted double‑digit drops.

Industry analysts attribute the trend to high prices, tightening mortgage conditions and a structural shortage of supply. María Matos, director of studies at Fotocasa, said the market “maintains notable strength but is entering a phase of normalisation.” Idealista spokesperson Francisco Iñareta called the recent correction “a reality after five months of decline.” Experts expect modest moderation in sales volume in the coming months as financing tightens and buyer power eases.