The projected home sales for 2025 may fall to 4 million transactions, marking the slowest pace since 1995. Mortgage rates are expected to average 6.7% throughout the year, contributing to affordability issues. In regions like the South and West, inventory has increased, but demand remains suppressed. Home prices are forecasted to rise by 2.5%, a slight revision down from earlier estimates. Many sellers are delaying price reductions and opting for delisting instead, indicating a wait-and-see approach in the current market.
Sales volume for existing homes is now expected to fall 1.5% annually, to just 4 million transactions, marking the slowest year since 1995.
Even with more homes on the market, buyer response has remained muted compared to what we'd expect from similar supply shifts in the past.
Home prices are projected to grow 2.5% through 2025, slightly lower than the 3.7% growth initially expected at the start of the year.
Many home sellers now appear to have opted to wait out the market rather than dropping their asking prices, as delistings surged 47% in May.
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