The spring 2025 housing market is witnessing three significant trends: an increase in unsold inventory, more new listings, and a marginal rise in home sales. With an 815% rise in sellers compared to last year, supply is building substantially, while demand remains tepid, especially without lower mortgage rates on the horizon. Despite slight year-over-year increases, home prices may soon decline as supply nears pre-pandemic levels. The overall economic slowdown and lingering consumer fears about recession could further affect buyer sentiment and market stability going into the year.
Supply continues to build in the housing market while demand remains weak. Inventory is increasing considerably, creating pressure on home prices that could shift negative soon.
While home prices are still slightly higher than last year, the current trends suggest they could begin to decline due to increasing supply and weak demand.
The economic context is critical; fears about recession and employment trends may impact homebuying decisions, especially if mortgage rates do not decrease.
There are more sellers and slightly more sales than last year, yet the growth in supply is outpacing demand, affecting overall market conditions.
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