Just like the overall economy, the Spanish residential real estate sector has staged a healthy cyclical recovery over the last few years, with remarkable increases in the number of transactions and prices. However, the demand for housing, mainly used units, has shown a significant slowdown so far in 2019. Following Arcano Economic Research’s close monitoring of the sector and its unquestionable importance for the domestic economy, in this note we analyse the main reasons behind the slowing demand for houses. In addition, we consider the sustainability of this trend and its potential impact on our positive outlook for the residential real estate cycle. Are we facing a turning point in this upward cycle, or is it just a bump in the road?