Spain Housing Supply Plunges 20% During Quarter as Prices Soar

The number of homes for sale on Spain’s main real estate listings website fell by 20% in the second quarter, the biggest drop since at least 2007 and a sign of the challenge the country faces to address its housing crunch.

The decline was even steeper in the two largest cities, with supply dropping 25% in Madrid and 21% in Barcelona from a year earlier, Idealista.com said in a report on Wednesday. At the same time, house prices in the capital rose 25% in June from a year earlier, hitting an all-time high of €5,642 ($6,542) per square meter.