2023 Mortgage Foreclosures Decline Across Spain: Regional Patterns and Quarterly Trends

The total number of mortgage foreclosures registered against primary residences declined by 21% in 2023, marking the largest year‑over‑year drop since 2018 and signaling a notable easing in the housing distress cycle. The data, published this week, come from the National Statistics Institute and provide a detailed view of how foreclosures evolved across the main autonomous communities and across different property types. For the quarter, Andalusia led the way in foreclosures as a share of total properties, followed by Catalonia and the Valencian Community, with the largest counts of foreclosures on homes occurring in Andalusia, Catalonia, and the Valencian Community. These figures emphasize that ownership patterns and regional housing markets continue to shape foreclosure trends across the country. From the total foreclosures registered in 2023, 19,270 cases were initiated, down 26.7% from the previous year, reflecting a broad pullback across both individual and non‑habitual properties. Among residential foreclosures on individuals, 11,285 cases were recorded in 2023, of which 9,248 involved owner‑occupied homes, a 21% decrease, while 2,037 related to non‑habitual residences, down 22.5%. The split underscores a shift toward greater stability in primary residences while non‑habitual properties also benefited from the easing trend. In terms of the dwelling state, 8.9% of 2023 foreclosures involved new homes, with the remaining 91.1% tied to second‑hand properties; new‑home foreclosures fell 44.7%, and second‑hand foreclosures declined 20.9%. This pattern suggests stronger resilience in the newer segment of the housing stock alongside a broad reduction in distress signals across the market. When looking at the year of mortgage creation, foreclosures on homes in 2023 included mortgages originated in 2007 at 15.1%, 2006 at 14.5%, and 2008 at 10.3%. Overall, the period 2005–2008 accounted for 49.8% of the foreclosures initiated in the year. These shares help explain how older mortgage vintages continue to influence current foreclosure dynamics and why historical loan structures matter for present affordability. Fourth quarter data show a continued decline: foreclosures initiated in property registries fell 14.3% from the prior year, and foreclosures on homes owned by individuals decreased 23.5% while those on habitual residences dropped 24.8%, marking seven consecutive quarters of decline. The fourth quarter of 2023 recorded 5,408 foreclosures, down 14.3% year over year. Of the property types, dwellings accounted for 62.5% of foreclosures in the last quarter, reflecting a continued emphasis on residential properties. About 42.3% of total foreclosures involved habitual residences of individuals, 10.6% involved entities, and 9.6% were other dwellings of individuals, with foreclosures on other urban properties representing 31.4% of the total. In terms of dwelling state, 10.3% of fourth‑quarter foreclosures involved new homes and 89.7% involved used homes; new‑home foreclosures fell 20.6%, and used‑home foreclosures fell 18.2%. For the year of mortgage creation, foreclosures on homes in 2007 represented 14.9%, those from 2006 accounted for 14.7%, and 2008 for 14.3%, with the 2005–2008 period concentrating 52.8% of foreclosures in this quarter. Regional figures for the quarter show Andalusia leading total foreclosures on all properties with 1,166 cases, followed by Catalonia with 1,056 and the Valencian Community with 893; Navarra, Cantabria, and the Principality of Asturias reported the lowest totals. For foreclosures on homes specifically, Andalusia registered 806 cases, Catalonia 669, and the Valencian Community 659, while Navarra, Cantabria, and La Rioja reported the smallest numbers. The data provide a quarterly lens on the same regional hierarchy seen in the broader yearly totals, illustrating how regional housing markets influence foreclosure risk. Source attribution: INE data on foreclosures and property registrations in 2023 and the fourth quarter.