Is now a good time to buy a home? Key tips

Buying a home remains one of the most important decisions a family can make — and one of the most uncertain.

Interest rates, price trends, available savings and job stability all lead many people to wonder: is now a good time to buy a home, or is it better to wait?

The honest answer is that there is no universal response. The best moment to buy depends on each buyer’s financial situation, market conditions and, of course, the type of property they are looking for.

What we can do is analyse the key indicators that help you make the decision with more confidence and less guesswork.

In cities like Valencia, where demand remains active and certain areas continue to show positive price growth, buying a home can still be an interesting move — whether as a primary residence or a long-term investment.

What is happening in the property market right now?

The Spanish property market continues to show activity, though with important differences depending on location and property type.

After several years marked by rising interest rates and more expensive financing, many buyers are again asking themselves whether it is a good time to buy property in Spain or whether they should wait for greater economic stability.

Official data paints a picture that is worth examining carefully.

Property transactions remain at high levels

According to Spain’s National Statistics Institute (INE), more than 700,000 residential property transactions were recorded in Spain during 2025 — an increase of 11.5% on the previous year. This reflects that, despite the rise in mortgage costs seen in recent years, demand remains solid.

One of the factors sustaining the market is the lack of supply in certain urban areas. In cities with high residential demand and limited available stock, prices hold more stably, and transactions continue to close relatively quickly.

In Valencia, this dynamic is particularly visible in established neighbourhoods and premium areas, where quality housing is in short supply.

Property prices continue on an upward trend

The latest House Price Index (IPV) figures published by the INE, corresponding to the end of 2025, show that property prices are maintaining a sustained upward trend in both new-build and second-hand housing.

The annual variation of the House Price Index reached 12.9% in the fourth quarter of 2025, while second-hand property recorded an increase of 13.1%.

This does not mean all areas are moving at the same pace. There are locations where prices are stabilising and others where demand continues to push values higher.

That is why, rather than trying to predict what the market will do in a few months’ time, it is far more useful to analyse:

• The location.
• The potential of the property.
• The buyer’s financial capacity.
• The intended time horizon.

The Euribor and mortgage conditions

Financing remains one of the factors that most influences the decision to buy. When assessing whether now is a good time to buy a new home, the behaviour of the Euribor and mortgage conditions carries obvious weight — though it is worth interpreting this data in perspective rather than focusing solely on monthly repayments.

How the Euribor has evolved

The Euribor underwent a sharp rise between 2022 and 2023 as a result of the European Central Bank’s monetary policy to contain inflation.

After several years in negative territory, the index surpassed 4% in 2023, significantly increasing the cost of variable-rate mortgages. It then entered a phase of moderation.

According to official data from the Bank of Spain, the 12-month Euribor began moderating during 2025 and closed December at 2.267%, compared with levels above 4% recorded in 2023. By April 2026, the index stood at 2.747%.

This adjustment has allowed some financial institutions to offer more competitive mortgage conditions once again, particularly on fixed and mixed-rate products.

What type of mortgages are being signed?

Another relevant data point is the prevalence of fixed-rate mortgages.

According to the latest figures published by the INE, fixed-rate mortgages continue to dominate in Spain. In January 2026, 66.7% of mortgages taken out on residential properties were signed at a fixed rate, compared to 33.3% at a variable rate.

This also signals something important: even in a higher-rate environment than a few years ago, active demand and genuine purchasing capacity still exist.

What this means for a buyer

The current situation requires a more careful analysis of any transaction but does not necessarily mean it should be ruled out.

At this moment it is especially important to:

• Compare mortgage offers.
• Assess the debt-to-income ratio.
• Model different repayment scenarios.
• Evaluate the purchase from a long-term perspective.

In many cases, waiting indefinitely for a significant drop in prices or rates can end up reducing the available options or making high-demand areas even more expensive.

So, is now a good time to buy a home?

The answer depends less on the market and more on the buyer’s individual circumstances.

For some people, this can be a good time to buy a home. For others, it may be more prudent to wait.

The key is to evaluate the transaction from a realistic financial standpoint.

When buying makes sense

Buying a home is generally a sound decision when:

• There is job stability.
• Sufficient savings are in place.
• The mortgage repayment is comfortably affordable.
• The property fits into a medium- or long-term life plan.

In these cases, the decision does not so much depend on finding “the perfect market moment” as on making a sound property investment.

Moreover, in many cities, rental costs continue to rise. For certain buyer profiles, directing a similar monthly amount towards ownership can prove more advantageous in the long run.

The importance of prior savings

One of the most common mistakes is to focus entirely on the mortgage and overlook the upfront costs.

As a general rule, buyers need sufficient savings to cover the down payment, taxes, notary fees, valuation and other transaction costs.

You may also find this useful → Property purchase taxes in Valencia 2026

It is also advisable to retain a financial buffer after purchase to avoid unexpected strain.

When will it be a good time to buy a home?

Many people delay the decision while waiting for a clear market correction. However, trying to time the market perfectly does not always prove useful.

In reality, when it will be a good time to buy a home depends on several personal factors that tend to carry more weight than short-term market fluctuations.

Signs that you can buy with confidence

There are certain indicators that can help you make the decision with greater peace of mind.

You have financial stability

Having a stable income and a consistent savings capacity allows you to approach the purchase with more room for manoeuvre and less financial pressure.

The mortgage repayment fits comfortably

Experts recommend that the monthly repayment should not exceed approximately 30% to 35% of the household’s net income.

The property meets a genuine need

Buying with the intention of staying for several years tends to reduce the impact of short-term market fluctuations.

You have found a good location

In certain areas — particularly in the best luxury residential areas near Valencia — limited supply means that well-located properties tend to hold their value more reliably over time.

Situations where waiting may be wiser

There are also scenarios where it may be more prudent to delay the purchase:

• Insufficient savings.
• Job instability.
• A requirement to finance too high a percentage.
• Decisions made under excessive urgency.

Buying a property involves a significant financial commitment, and it should be approached with an adequate margin.

Buying a home in Valencia: what to consider

The Valencia market has its own distinct characteristics. International demand, the city’s residential appeal and limited supply in certain areas mean that some neighbourhoods maintain a particularly resilient performance.

For properties in Valencia’s most sought-after areas, buyer interest remains high — particularly for homes and gated residential developments with strong connectivity.

Whether you are asking whether it is a good time to buy your first home, a new-build investment or a vacation home in Spain, it is always worth analysing each transaction individually:

• The exact location.
• The condition of the property.
• The projected growth of the area.
• The potential for capital appreciation.

Specialist advice also makes it possible to identify genuine opportunities and avoid rushed decisions.

So, is now a good time to buy a home?

The answer depends on each buyer, but the data show that the market remains active and that many transactions continue to close even in a more demanding financial environment than a few years ago.

Analysing the location, assessing the property’s potential, reviewing the financing options and making informed decisions is especially important in a market that continues to show momentum and significant differences between areas.

At Monserrate we work with a personalised approach, supporting each buyer according to their needs, profile and objectives.

Our team has in-depth knowledge of Valencia’s most sought-after residential areas and can help you identify opportunities that genuinely match what you are looking for – avoiding rushed purchases or properties that do not meet your medium- and long-term expectations.

Contact us ➡️ Because beyond trying to predict the perfect market moment, what matters is finding the right property and doing so with the right guidance.