This paper examines the long and short term of housing price behaviour in Spanish market at aggregated level. It uses the fundamentals to explain housing prices cycles in terms of the long term determinants during last decades, explaining the different pattern between the seventies and nineties' process of housing prices' increase. Using a methodology of Error Correction Model, the paper finds evidence of the existence of movements on residential prices tending to its long term equilibrium level and how the relevant deviation from it occurs after each structural change. Last cycle, 1994-2004, is the consequence of the integration process to EMU and also of the extreme dynamism of the mortgage market.