Are Madrid’s 110-day detached listings a market signal or survivor bias?

That’s fair. For a purchase decision, I’d use the broad figure only to identify homes worth investigating, then ask about original price, prior offers, relistings, condition and seller timing. The property-level history is more actionable than the Madrid-wide average.
 
So the next useful comparison is three groups: recent completed sales where timing can be reconstructed, genuinely withdrawn homes, and listings still active. Keep neighbourhood and condition tight, then overlay price cuts. That should show whether 110 days reflects the market or mainly the leftovers.
 
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