The Spanish real estate market is beginning to show clearer signs of moderation in the number of transactions. According to preliminary data from the Spanish Land Registrars, home sales fell by 7.7% year-on-year in July, reaching around 60,050 transactions. This represents the sharpest annual decline in more than two years. Today, we will look at this development from Quinta Avenida and examine how the market is evolving, particularly in the Valencian Community.
Home sales record their sharpest decline in more than two years
Around 118,000 real estate transactions were registered across Spain in July, 4.7% fewer than in the same month of 2025. Of these, approximately 60,050 involved homes, representing the 7.7% year-on-year decline.
The figures point to a slowdown in the residential sector, although this does not necessarily mean that demand has disappeared. The evolution of property prices, access to financing and the availability of homes for sale continue to influence the ability of buyers to complete transactions.
The regional performance was uneven. Only Navarra, Castilla y León and Castilla-La Mancha recorded increases in home sales, with growth of 26.4%, 6.2% and 2.4%, respectively.
The largest declines were recorded in Cantabria, with a 17.6% drop, followed by the Balearic Islands, Melilla and Asturias, all with decreases of more than 15%.
The Valencian real estate market also sees a decline in transactions
The Valencian Community was also among the major residential markets affected by the slowdown. Home sales fell by 12.2% year-on-year in July, with 9,277 transactions recorded.
Despite this decline, the Valencian Community remains one of Spain’s most active residential markets. In absolute terms, Andalucía, Catalonia, the Valencian Community and Madrid continue to account for some of the highest volumes of property transactions in the country.
The figures show that a reduction in transactions does not necessarily mean that demand has disappeared. Instead, the combination of housing prices, financing conditions and the availability of suitable properties can make it more difficult for certain buyers to complete a purchase.
For those looking to buy a home, this environment makes it increasingly important to have up-to-date information about prices, financing and the availability of properties for sale.
Mortgages on homes also record a decline
The evolution of mortgage lending provides another indication of the moderation in the market. More than 57,400 mortgages were registered on all types of properties in July, 0.6% fewer than in the same month of 2025.
When looking exclusively at mortgages for homes, the decline was more pronounced. Just under 43,300 residential mortgages were registered, representing a 4.2% year-on-year decrease. This was the second decline of 2026, following the decrease recorded in May.
The regional differences were significant. The Balearic Islands recorded the strongest growth in home mortgages, at 24.9%, followed by Castilla y León at 9.2% and Asturias at 7.1%.
At the other end of the scale, Cantabria recorded a 32.3% decline, while the Canary Islands fell 23.7%, Aragón 22.1% and La Rioja 21.4%.
Among Spain’s major residential markets, only Catalonia recorded an increase in mortgage lending, with growth of 2.9%. The Valencian Community registered a 2.2% decline, while Madrid fell 3.8% and Andalucía 8.4%.
What does this change mean for the real estate market?
July’s figures indicate that the number of property transactions is losing momentum, although activity remains concentrated in Spain’s main residential markets.
The decline in home sales and residential mortgages may point towards greater caution among buyers. At the same time, demand remains present, and the differences between regions show that the real estate market is not evolving uniformly across Spain.
For sellers, buyers and real estate agencies, this environment makes it increasingly important to analyse each transaction individually and understand the specific conditions of each local market.
Conclusion
The latest figures from the Spanish Land Registrars show that July marked an important change in the evolution of home sales, with a 7.7% year-on-year decline representing the sharpest drop in more than two years. The Valencian Community has also experienced a significant reduction in transactions, although it remains one of Spain’s most active residential markets.
At Quinta Avenida, we continue to follow the evolution of the real estate market to help you make informed decisions. If you are looking to sell, buy or rent your home, have questions about the market or need professional advice on your property, you can contact us or visit the Quinta Avenida website.
