The housing market shows stability with prices rising by 3.6 percent in the second quarter, aligning with the gain recorded three months earlier according to the National Institute of Statistics. This remains a positive signal amid broader sector softness driven by higher interest rates that dampen demand.
Prices stayed in positive territory quarter over quarter, edging up by 0.1 percent in the second quarter compared with the previous period. The data highlight how new housing continues to lead the advance, posting a robust 7.7 percent year over year, the strongest rise since the second quarter of 2022. Among the latest figures, the smallest year-on-year increase in the last two years was 2.9 percent.
With this latest annual uptick, housing prices have now risen for 37 consecutive quarters. The environment features higher financing costs as monetary policy tightens to curb inflation, which in turn slows purchases and the issuance of new mortgages.
2.1% more expensive
In addition to the annual uptick, housing prices increased by 2.1 percent in the second quarter, marking the largest quarterly rise since early 2022. Across different housing types, the market saw a notable performance in the second-hand segment, which grew by 2.2 percent when compared with the January to March period.
New house prices rose by 1.7 percent on a quarterly basis, underscoring continued momentum in the new-build segment despite higher borrowing costs.
These gains followed a 3.5 percent year-on-year rise in the first quarter and a nine-year streak of increases that culminated in the strongest annual rise since 2007. By year-end, the quarterly change had softened to a slight 0.8 percent decline in the prior cycle, illustrating shifting dynamics as the year progressed.
in all communities
Across all autonomous communities, housing prices posted positive annual gains in the second quarter. The largest increases occurred in the autonomous cities of Ceuta and Melilla, at 6.2 percent and 6.1 percent respectively. Navarra saw a notable rise of 5.6 percent, followed by Cantabria at 4.7 percent and both Andalusia and the Canary Islands at 4.5 percent. The Community of Madrid registered a 4.1 percent uptick, while Valencia saw prices rise 3.5 percent. The Balearic Islands and Catalonia posted increases of 3.2 percent each. On the lower end, Murcia saw a 1.4 percent rise, Extremadura 1.8 percent, and Castilla-La Mancha 2 percent.
Quarterly comparisons show all communities also growing versus the previous quarter, with Extremadura leading at 3 percent, Castilla-La Mancha at 2.9 percent, and Andalusia at 2.7 percent, reflecting broad-based uplift across the country.