Housing Supply Sees Historic Decline, Reports Idealista

The real estate portal Idealista has revealed a significant contraction in the housing market, noting a 15% decrease in the number of homes available for sale in the last quarter of 2024 compared to the same period in 2023. This drop marks the largest year-on-year decline recorded in the portal's history.

According to the report, all provincial capitals, with the exception of Girona, experienced a reduction in available properties. Girona saw a modest increase of 5%. The most pronounced declines were observed in Zaragoza, where the housing supply plummeted by 40%. Other cities facing substantial decreases include A Coruña and Oviedo, both with a 38% drop, followed by Pontevedra (-34%), Sevilla (-33%), Teruel (-33%), Soria (-32%), Burgos (-31%), Ávila (-31%), and Valencia (-30%).

In major urban areas, alongside Sevilla and Valencia, Madrid also experienced a significant reduction in housing supply, with a 29% decrease. Barcelona saw a slightly lesser decline of 23%. Other cities with moderate reductions include Bilbao (-19%), Palma (-17%), Alicante (-15%), Málaga (-12%), and San Sebastián (-8%).

The report highlights that the inventory of homes available for purchase has reached historic lows in 11 provincial capitals, including A Coruña, Ávila, Burgos, Ceuta, Ciudad Real, Las Palmas de Gran Canaria, Oviedo, Soria, Tarragona, Teruel, and Valladolid.

The magnitude of the decline in housing supply was more severe in the capitals compared to the overall provincial figures, reflecting the heightened tension in a market that ended 2024 with a notable resurgence in property transactions. Experts widely agree on the existing scarcity of housing, which could also explain why some properties are being sold without being formally listed on real estate platforms like Idealista.

On a provincial level, a general downward trend in housing supply was noted, with the only exception being Cáceres, where supply increased by 1% in the last quarter. Zaragoza recorded the steepest decline at 36%, followed by Madrid (-28%), Asturias (-27%), Cantabria (-25%), Valencia (-25%), and Huesca, Álava, and Bizkaia, each with a 24% reduction. Barcelona's supply fell by 16%.

Alicante and Jaén, aside from Cáceres, reported the smallest declines, both at -3%. Following them were Girona and Badajoz (-4%), with the least significant drops observed in Zamora (-6%), Murcia (-6%), Lleida (-7%), Lugo (-9%), Ourense (-10%), and Málaga (-10%).

Francisco Iñareta, a representative from Idealista, forecasted a worsening of this situation in the coming months, especially considering the recent decrease in mortgage costs that signals a shift in monetary policy. He stated that with a future characterized by lower interest rates, it seems unlikely that demand will ease in the near term, which is expected to further intensify pressure on housing prices.