After nearly four years of steady increases, Spain’s used housing market finally paused. In August, the average asking price for second-hand homes slipped by 0.3 percent, ending a 43-month run of uninterrupted monthly growth. Prices remain at record levels: 2,924 euros per square meter, up 12.5 percent from a year ago.
The shift matters to buyers and sellers. The first national monthly drop since late 2022 suggests the market may be changing course, even as annual gains continue. The latest Idealista index, published September 2, 2026, shows that prices are still rising year on year, but monthly increases have stalled. Idealista says this is the first monthly decline after 43 months of growth. Double-digit annual increases have now lasted for 20 consecutive months.
Alternative data from Fotocasa shows a sharper annual rise: used home prices jumped 15.6% year on year in August, reaching 3,166 euros per square meter. That marked the 70th consecutive month of annual growth.
The 0.3 percent dip from July to August doesn’t mean homes cost less than last year. The market has seen 20 straight months of double-digit annual increases. An 80-square-meter flat now costs an average of 233,920 euros before taxes and fees. A 100-square-meter property costs 292,400 euros. That figure excludes closing costs and taxes, with mortgage interest on top.
Regional differences are stark. Cantabria leads with a 17.2 percent annual jump. Castilla-La Mancha follows at 16.4 percent, while Aragón is up 15.4 percent. The Balearic Islands remain Spain’s most expensive region, with average asking prices at 5,595 euros per square meter. Madrid and Euskadi follow. Extremadura is the least expensive, at 1,049 euros per square meter. The gaps point to a deep divide in housing affordability across Spain.
Provincial and city data show even sharper contrasts. Only Ourense saw a year-on-year decline, down 5.4 percent. Toledo posted the largest provincial increase, at 19.9 percent. Among provincial capitals, San Sebastián is the priciest at 6,680 euros per square meter, with Madrid and Barcelona close behind. Zamora and Jaén have the lowest prices among the country’s capital cities.
Purchase prices are climbing, and rents have surged too: Idealista reports that average rents in August rose 5.8% year on year to 15.1 euros per square meter per month. The increases are deepening Spain's housing affordability crisis as both buying and renting become more expensive.
Idealista
What’s behind the slowdown? Analysts point to cooling in major cities, where more listings and price reductions are starting to appear. So far, those changes haven’t led to annual declines, and the market remains strong. Idealista’s figures track asking prices, not final sale prices. The official INE Housing Price Index, which follows completed transactions, uses a different method and may show a slightly different trend.
For many buyers, the challenge goes beyond the headline price. Financing has become tougher, and rising property values and borrowing costs make it harder for households to get a mortgage. The government has recently tried to address affordability, including efforts to cap student housing costs in basic regions.
Idealista has also updated its methodology, adjusting historical data to better filter out unusual values. The technical change aims to make comparisons between periods more accurate. Spain’s housing market remains hot, even as monthly data show the first signs of a slowdown.
Despite the small dip, buying a home remains expensive and often out of reach for many Spaniards, especially in the most sought-after areas. The brief pause in monthly growth may offer some hope to frustrated buyers, but annual increases remain high and regional gaps are widening. A real price correction looks unlikely unless supply grows or demand cools further. Housing costs remain steep, and this first monthly decline after years of increases has yet to bring meaningful relief.
