Mid-Year 2025 U.S. Housing Market Update

Fewer Home Sales, But Momentum Is Growing

While existing home sales have picked up slightly from last year, overall activity is still well below pre-pandemic levels. Buyers remain cautious due to high mortgage rates and affordability concerns. Still, an uptick in inventory and some price reductions are drawing renewed interest.

“Home sales have been at 75% of normal or pre-pandemic activity for the past three years, even with seven million jobs added to the economy. Pent-up housing demand continues to grow, though not realized.” – Lawrence Yun, NAR

What it means for you: Buyers may benefit from less competition and more room to negotiate. Sellers need to price competitively and understand today’s buyer mindset.

Mortgage Rates Remain Elevated but Stable

30-year fixed mortgage rates are hovering near 6.4%, and affordability continues to be a central issue. Builders and sellers are responding with rate buydowns and closing cost incentives.

What it means for you: Buyers should consider upfront savings strategies. Sellers can attract attention by offering financial incentives that ease monthly costs for buyers.

An Uptick in Inventory Offers Opportunity

For the first time in recent years, sellers outnumber buyers significantly—by nearly 500,000 nationwide. Many markets are shifting into buyer territory, especially in the South and on the West Coast.

What it means for you: Buyers have more choice and leverage. Sellers must be prepared to price competitively and respond to market feedback quickly.

Home Prices Remain High But Show Signs of Softening

Although prices remain historically high, values are starting to flatten or decline in many states. The Sun Belt is seeing the most notable cooling. Still, inventory shortages are preventing a dramatic drop.

What it means for you: Buyers may find deals on homes that have lingered. Sellers must be realistic and align pricing strategies with current trends.