Home sales in Spain are experiencing a slowdown, with the biggest drop in the past two years. Industry experts say the reason is the lack of supply.

According to data the national institute of statistics (INE) issued on Tuesday, sales fell by 7.3 per cent in May compared to the same month in 2025, totalling 56,462 operations. This marks the fifth consecutive decline and the largest drop since May 2024, when home sales fell by 22.07 per cent.

Real estate personal shopper (PSI) Iñaki Unsain said that behind this drop is the lack of available housing because fewer and fewer properties are entering the market in areas where purchasing pressure is highest, although demand remains solid.

Director of studies at Pisos.com Ferran Font stated that sales remain at historically high levels and confirms that the market shows significant activity.

Looking ahead to the coming months, experts suggest that the European Central Bank's (ECB) funding and monetary policy will play a key role in sales. The market will maintain a good level of activity, albeit with more moderate growth and an increasingly stable evolution.

Behind the drop is the decrease in the sale of second-hand homes, which fell 7.6 per cent year-on-year, to 44,574 transactions.

Sales of new homes, however, also decreased by six per cent, to 11,888, despite a rebound in April.

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